Fed, FDIC, OCC update guidance on third-party risk management
Payments Dive
JUNE 8, 2023
The guidance is aimed at helping banks address the operational, compliance and strategic risks of third-party tie-ups, such as those with fintech firms.
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Payments Dive
JUNE 8, 2023
The guidance is aimed at helping banks address the operational, compliance and strategic risks of third-party tie-ups, such as those with fintech firms.
American Banker
MARCH 29, 2024
The steady drumbeat of consent orders against banks that offer banking as a service continues, with regulators telling banks to keep a closer eye on their fintechs' compliance with the Bank Secrecy Act and money laundering rules.
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CFPB Monitor
MAY 4, 2023
The FDIC recently announced that it has entered into a Consent Order with Cross River Bank (CRB or Bank) to resolve FDIC charges that the Bank engaged in unsafe or unsound practices related to its fair lending compliance. (The The Consent Order was issued in March 2023 but not made public until the end of last month.) .
Perficient
DECEMBER 27, 2023
YOU MAY ENJOY: Regulatory Reporting in Financial Services Modernizing CRA Regulations Managing compliance risk frameworks in alignment with existing risk profiles is crucial as customer needs evolve. Contracts should explicitly address potential default and termination.
BankInovation
OCTOBER 1, 2020
The Federal Deposit Insurance Corporation (FDIC) has taken steps to promote fintech partnerships and diversity and inclusion within the financial services industry, both internally at the FDIC and among the institutions it regulates, FDIC Chairwoman Jelena McWilliams said during the LendIt Fintech USA 2020 conference Wednesday.
Bank Innovation
APRIL 25, 2019
Fintechs are having trouble facing reality when it comes to obtaining bank charters, FDIC Chairman Jelena McWilliams and Comptroller of the Currency Joseph Otting said here at the FDIC’s Fintech and the Future of Banking conference on Wednesday. WASHINGTON, D.C.
Banking Exchange
SEPTEMBER 1, 2021
FDIC, Fed and OCC published updated guidance on fintech work for community banks Community Banking Feature3 Fintech Feature Duties Compliance.
American Banker
NOVEMBER 29, 2023
The Port Angeles, Washington-based bank said it has already invested "significant resources" into enhancing its compliance management for fintech partnerships, after self-reporting a problem last year.
Gonzobanker
JUNE 14, 2023
To realize the rewards of the BaaS industry, banks and fintechs are going to have to learn to play by some non-negotiable rules – together. Now, the bank is required to receive FDIC approval for all new third parties and credit products. The FDIC Consent Order is going to impact all partnerships going forward.
Bank Innovation
JULY 31, 2018
It’s good news for fintechs in lending and payments that want a federal banking license, the Office of Comptroller of the Currency (OCC) has started accepting applications starting today. The fintech charter does not require deposit insurance from the FDIC, per a recommendation from the Treasury Department.
BankInovation
OCTOBER 1, 2020
The Federal Deposit Insurance Corporation (FDIC) has taken steps to promote fintech partnerships and diversity and inclusion within the financial services industry, both internally at the FDIC and among the institutions it regulates, FDIC Chairwoman Jelena McWilliams said during the LendIt Fintech USA 2020 conference Wednesday.
Banking Exchange
MAY 19, 2021
Corporation is the latest regulator to respond to the rapidly growing fintech market Compliance Technology Feature3 Fintech Blockchain Feature Financial Trends Bitcoin Cryptocurrency Compliance Management Compliance/Regulatory.
CFPB Monitor
SEPTEMBER 14, 2021
Last week, the Federal Reserve Board published a paper on partnerships between community banks and fintech companies, “Community Bank Access to Innovation through Partnerships.” The Fed’s publication of the paper is another indication of the increased attention that regulators are paying to bank relationships with fintechs.
Bank Innovation
JULY 29, 2019
On the heels of digital banking startup Varo Money applying for a banking license with the Federal Deposit Insurance Corporation (FDIC) earlier this month, another fintech firm with its toes in charter waters seems poised to jump in.
CFPB Monitor
MARCH 24, 2020
The FDIC has issued a proposed rule setting forth the conditions it would impose and the commitments it would require to approve a deposit insurance application from an industrial bank or industrial loan company (collectively, ILC) whose parent company is not subject to consolidated supervision by the Federal Reserve Board (FRB).
CFPB Monitor
AUGUST 31, 2021
The OCC, FDIC, and Federal Reserve Board have issued a guide that is intended to assist community banks in conducting due diligence when considering relationships with financial technology (fintech) companies (Guide). Legal and regulatory compliance. Financial condition and competitive market environment and client base.
Bank Innovation
APRIL 24, 2019
Secretary of the Treasury Steven Mnuchin said today that he prefers private over government solutions when it comes to collecting and using consumer data for financial products and services, speaking at a fintech conference hosted here by the FDIC.
CFPB Monitor
AUGUST 24, 2020
We have previously blogged about the lawsuits filed by the Colorado Attorney General against fintechs Avant and Marlette Funding and their partner banks WebBank and Cross River Bank. Supreme Court, a Colorado appellate court (after any chance for appeal has run) or the FDIC adopts a “true lender” test that differs from the safe harbor).
PYMNTS
JULY 15, 2020
European FinTech Revolut, which recently debuted in the U.S. With Paxos Crypto Brokerage, companies can leverage our expertise and regulatory compliance to easily and securely integrate crypto into their applications. In a Wednesday (July 15) press release, Paxos Trust Co. Paxos will hold crypto assets for Revolut’s users in the U.S.,
American Banker
FEBRUARY 23, 2024
An FDIC enforcement action against Lineage Bank is part of a wave of cases involving banks that have partnered with fintechs in recent years.
American Banker
JUNE 7, 2023
The interagency report recommends practices for financial institutions to manage relationships with fintechs and other third parties.
BankInovation
JUNE 3, 2021
As banks, fintechs and financial institutions grapple with how to implement artificial intelligence (AI), the U.S. Federal Deposit Insurance Corporation (FDIC) is exploring how to shepherd such integrations while also assimilating changes in the agency’s internal tech stack.
American Banker
APRIL 28, 2024
The Federal Deposit Insurance Corp. is arguing that Colorado has the right to establish an interest rate cap that all state-chartered banks must follow. Three industry groups are suing the state in an effort to stop its attempted crackdown.
PYMNTS
DECEMBER 14, 2018
News came earlier in the month that several federal agencies have come out — together — in support of banks embracing innovation in their compliance efforts. Private sector innovation is of value, and pilot programs may be too, which opens the door to FinTech — all of which now can come through industry commentary.
PYMNTS
AUGUST 7, 2019
Without a regulatory mandate, many in the financial services and FinTech space believe that competition will — and already has — nudged the industry toward embracing data integrations across platforms and service providers in the name of better banking experiences. Bank participation is key to promoting open banking in the U.S.,
American Banker
FEBRUARY 7, 2024
counterparts — the OCC and FDIC, bunq told American Banker. "Some difference of views has emerged" between the Dutch banking regulator and two U.S.
CFPB Monitor
JULY 15, 2021
The Federal Reserve, FDIC, and OCC have released proposed guidance for banking organizations on managing risks associated with third-party relationships, including relationships with financial technology-focused entities such as bank/fintech sponsorship arrangements. partnerships, joint ventures), including technology companies.
PYMNTS
NOVEMBER 23, 2020
While many digital-first companies springboard from payments into lending, Figure Technologies , a FinTech focused on home improvement, debt consolidation and retirement products that leverage blockchain protocols, is branching out from lending into payments. Blockchain and a bank charter might do much to boost financial inclusion.
American Banker
FEBRUARY 23, 2022
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CFPB Monitor
SEPTEMBER 10, 2020
The DBO indicated that it “is investigating whether LoanMart’s role in the arrangement is so extensive as to require compliance with California’s lending laws. The FDIC has not yet proposed a similar rule. If adopted, this rule also will almost certainly be challenged.
Gonzobanker
FEBRUARY 1, 2024
The FDIC Approved This Ad How many times did we hear a speaker admonish the audience to “be sure and sign up for the FDIC notification list.” Joint presentations between bankers and fintechs abounded, showcasing collaborative initiatives. Five Hundred? (Oh
American Banker
APRIL 12, 2024
Recent months have seen an uptick in enforcement actions against banks engaging in banking-as-a-service strategies. Observers are split on whether that enhanced scrutiny is temporary or terminal.
American Banker
OCTOBER 12, 2022
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Jeff For Banks
JUNE 20, 2017
And let's not forget about the thousands of employees that work for regulatory bodies, compliance personnel in banks, and consultants that help them comply. So what am I talking about, that deposit insurance is why banks don't do like FinTech lending firms and use alternatives to the FICO score in underwriting consumer credits?
CFPB Monitor
SEPTEMBER 9, 2020
Our letter draws on Ballard Spahr’s two-plus decades of experience in representing banks and savings associations (“Banks”) in establishing lending programs (“Bank-Agent Programs”) where a Bank obtains substantial assistance from a fintech or other non-Bank company (an “Agent”) to offer Bank loans to consumers or small businesses.
Insights on Business
MARCH 5, 2019
Reducing costs but appeasing regulators seems like an oxymoron, yet, many AML compliance and operations leaders are being asked to do just that. They even mentioned that these approaches “can maximize utilization of banks’ BSA/AML compliance resources.” But is it possible? Federal encouragement starts now.
Independent Banker
FEBRUARY 24, 2016
The quickness with which these Wall Street-driven nonbank lenders—variously called peer-to-peer, online marketplace or financial technology (FinTech) lenders—can fulfill borrowers’ requests has enabled alternative lending to double every year since 2010. FDIC-insured deposits largely solve this problem for banks.
Celent Banking
DECEMBER 13, 2016
The FDIC expresses best the sentiment of worldwide regulators: “A bank’s use of third parties does not relinquish responsibility… but holds it to the same extent as if the activity were handled within the institution." " www.fdic.gov.
CFPB Monitor
NOVEMBER 22, 2022
The report attributes the risk that such schemes will arise to bank/fintech relationships that “lack proper regulatory oversight or principles for responsible lending.”
Fintech Labs Insights
MAY 8, 2015
Accounts will be dollar-denominated and FDIC-insured. “Our mission at itBit has always been to create a trusted, institutional-grade exchange and regulatory compliance is an important pillar of that mission,” Cascarilla said.” Senator Bill Bradley, and former FASB Chair Robert H.Herz.
American Banker
AUGUST 25, 2023
The small community bank was bought up by crypto-focused investors and quickly repositioned to cater to tech innovators. Is this problematic or perfectly legitimate?
Abrigo
SEPTEMBER 14, 2022
Financial institutions, fintech companies, and other small business lenders will need to begin collecting a wide array of small business lending data under the Consumer Financial Protection Board’s (CFPB) proposed small business lending data collection rule. It isn’t just a compliance program problem or a data management problem.
William Mills
SEPTEMBER 9, 2016
An App Store for FinTech applications. Addresses compliance, fraud experience and customer experience analytics. Social media is a special challenge since social media was not created with compliance in mind. This sounds like the best of both worlds – social funding for SMB’s with the backing of their FDIC-insurance bank.
Independent Banker
JUNE 30, 2022
Using FDIC data for 2021, we calculated a lender score out of 100 for each community bank. So, when the community bank’s leadership learned of a fintech that needed a bank partner to launch a credit-building tech product, they were intrigued. By Ed Avis. Methodology. One of the missions of Lead Bank in Lee’s Summit, Mo.,
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