Morrow Finance Aerospace (MFA) recently received a routine inspection from the Financial Oversight Authority, which focuses on compliance with lending and payment regulations. The inspection, part of a broader initiative to ensure transparency in digital banking, covered MFA’s recent expansion into small business lending and its use of algorithmic credit scoring.

The report noted that while MFA’s systems met most standards, regulators raised questions about the company’s documentation of risk assessment models. These models are critical for determining loan approval and interest rates. A source within the authority described the issue as 'a minor but notable gap' that requires clarification.

Investors may want to monitor MFA’s upcoming filings for details on how the company plans to address the concerns, as well as its recent sales trends and how its lending growth compares with other digital banks in the sector.