What Alkami Technology, Inc. told the SEC could break it.

Alkami is a technology service provider to U.S. financial institutions, which makes it subject to regulation, supervision and examination by banking regulators — the OCC, NCUA, and the Federal Reserve — under bank third-party/vendor-management and FFIEC frameworks. Heightened regulatory scrutiny of critical bank-technology vendors, examination findings, or new third-party-risk rules could raise compliance costs, constrain its product/operations, or jeopardize client relationships if its services are deemed non-compliant. A structural regulatory exposure tied to serving a heavily regulated FI customer base.

“We are a technology service provider to FIs in the United States that are subject to regulation, supervision and examination by a number of regulatory agencies”

Alkami relies on technology and development resources in India and established an India subsidiary in 2024 to capture cost savings on its engineering operations. It warns this reliance may expose it to unanticipated costs and liabilities and challenges around regulatory compliance, tariffs, tax, labor laws, currency fluctuations and operational scaling. Concentrating a meaningful share of its R&D/engineering capacity offshore in India creates labor-supply, geopolitical and currency exposure to that single jurisdiction; disruption there would slow product development for its digital-banking platform. A specific offshore-development geographic dependence.

“Our use and reliance upon technology and development resources in India may expose us to unanticipated costs and liabilities, which could affect our ability to realize cost savings from our technology operations in India.”