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.
CFPB Monitor
JUNE 8, 2023
The Federal Reserve, FDIC, and OCC have released final interagency guidance for their respective supervised banking organizations on managing risks associated with third-party relationships, including relationships with financial technology-focused entities such as bank/fintech sponsorship arrangements. Continue Reading
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American Banker
JULY 20, 2020
The agency's request for information seeks comment on the idea of the FDIC partnering with a standards-setting organization to develop best practices for technology firms, among other things.
PYMNTS
JUNE 10, 2019
The company has reportedly been hiring numerous product managers and engineers. Its new FinTech team could ultimately have more than 100 workers. The company’s push into FinTech will help broaden its lead over rival service Lyft, and its offerings will look to help increase customer engagement and loyalty.
CFPB Monitor
DECEMBER 28, 2020
The FDIC has issued a final rule setting forth the conditions it will impose and the commitments it will 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).
Perficient
DECEMBER 27, 2023
Navigating AML and OFAC Compliance Risks Regarding anti-money laundering (AML) and Office of Foreign Assets Control (OFAC) compliance risks, bank executives must navigate operational and compliance challenges tied to fintech relationships. Manage third-party risks, especially for relationships involving higher-risk or critical activities.
PYMNTS
DECEMBER 2, 2020
Silicon Valley FinTech startup Step has raised $50 million in a Series B funding round, the company announced Wednesday (Dec. The funding round was led by new investor Coatue Management, a slew of celebrity backers and Big Tech executives. Users can transfer funds in real time without any fees.
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.
CFPB Monitor
JULY 21, 2021
Last week, the OCC, Federal Reserve Board, and FDIC issued proposed guidance for banking organizations on managing risks associated with third-party relationships, including those with financial technology-focused entities such as bank/fintech sponsorship arrangements. On August 6, 2021 from 12:00 p.m. to 1:00 p.m.
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).
Payments Source
FEBRUARY 19, 2021
Brex currently relies on bank partners to offer credit cards and cash management accounts to small and midsize businesses. It is looking to charter its own FDIC-insured institution to be a direct provider.
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.
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.
American Banker
FEBRUARY 19, 2021
Brex currently relies on bank partners to offer credit cards and cash management accounts to small and midsize businesses. It is looking to charter its own FDIC-insured institution to be a direct provider.
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). Risk management policies, processes, and controls. Legal and regulatory compliance.
CFPB Monitor
OCTOBER 14, 2019
in sponsoring a podcast on vendor management risk issues. The podcast showcases Glen’s perspectives on the likelihood of CFPB, FTC, FDIC and OCC regulatory developments occurring in the near term with respect to vendor management, and includes a discussion of the OCC fintech charter.
Payments Source
FEBRUARY 27, 2018
soon to be under new management — on Square’s ILC application could foreshadow how other fintech firms seek banking powers. A decision by the Federal Deposit Insurance Corp.
PYMNTS
DECEMBER 23, 2020
The 6-year-old who get his hands on Mom’s iPad and manages to rack up $16,000 worth of credit charges for online gaming. The teenager with a Fortnite habit who manages to clean out Dad’s checking account via the debit card linked to the gaming account. We’ve all heard the horror stories.
American Banker
JUNE 7, 2023
The interagency report recommends practices for financial institutions to manage relationships with fintechs and other third parties.
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. Due diligence and third-party selection. Contract negotiation.
PYMNTS
NOVEMBER 1, 2018
The ongoing struggle, supposedly existential in nature, that pits upstart, relatively young FinTech firms against arrogantly complacent banks for supremacy in this new and growing world of digital payments and commerce. And that is a bank – one with FDIC insurance and safeguards that keep their money safe. The subject? Trust in Banks.
PYMNTS
MAY 27, 2020
And, they said, traditional players can find competitive strength by linking up with firms that had previously been viewed as foes (that would be FinTechs). HMBradley offers FDIC-insured accounts through Hatch Bank based in California, and rates of about 3 percent on its savings accounts.
Gonzobanker
MAY 4, 2020
All the capital flowing into the digital fintech space is helping to solve banking industry challenges. As the industry’s appetite for digital technology grows, the capital that’s been flowing into mostly digital-focused fintech is solving real industry challenges right now. SoFi/Galileo: This $1.2 customer impact.
PYMNTS
DECEMBER 11, 2020
The FinTech partnered with Metropolitan Commercial Bank for FDIC backing of deposits up to $250,000. “As They should have the tools to help them manage their money more conveniently and accurately,” said Nik Storonsky , founder and chief executive officer of Revolut. In March, Revolut launched in the U.S.
PYMNTS
MAY 4, 2020
The FinTech startup, which works to help millennials get into equities, crypto trading and other options, has benefited from the quarantine’s effects as people stay at home and have time to explore new finance options. FinTech startups like Robinhood have been popular lately, attracting numerous new backers.
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
DECEMBER 12, 2019
Online brokerage startup Robinhood has introduced a cash management service that will give customers 1.8 Silicon Valley’s Robinhood is known for making free stock trading accessible, and has spent the last year figuring out the best way to offer cash management services. No FinTech startup has been successful at getting a bank charter.
PYMNTS
DECEMBER 11, 2020
The FinTech partnered with Metropolitan Commercial Bank for FDIC backing of deposits up to $250,000. “As They should have the tools to help them manage their money more conveniently and accurately,” said Nik Storonsky , founder and chief executive officer of Revolut. In March, Revolut launched in the U.S.
Celent Banking
DECEMBER 13, 2016
But the slew of banking regulatory requirements for third party risk management is proving to be complex, all-consuming and expensive for both institutions and the third parties involved. Unfortunately, there are few institutions that have successfully implemented strategic third party risk management programs. " www.fdic.gov.
PYMNTS
JUNE 25, 2019
Cross River Bank has partnered with a range of FinTech startups since its 2008 launch, including collaborations with Stripe , Coinbase and Affirm , reports said. Its takeover of Seed strengthens its position in the small business FinTech market. reports said.
PYMNTS
JULY 15, 2020
European FinTech Revolut, which recently debuted in the U.S. while enabling Revolut to control “the user experience” and manage its “customer relationships.” debut in March, teaming up with Metropolitan Commercial Bank to offer FDIC -insured accounts that can be opened and accessed through smartphones. Revolut made its U.S.
PYMNTS
AUGUST 3, 2020
Consumers get to keep their existing banking relationship, but receive real-time, value-added financial management services based on spending patterns and goals. Many of our student customers today are struggling to manage their money as they work part-time and attend school,” she said. students to access the Google Pay app.
PYMNTS
DECEMBER 16, 2018
Robinhood , the FinTech that garnered a lot of attention last week after announcing a checking and savings product with 3 percent interest, has retreated from that, removing any mention of checking and savings from the product.
PYMNTS
NOVEMBER 9, 2020
percent in 2019, its lowest rate in a decade since the FDIC first began tracking this statistic in 2009. Another FDIC report found that 31 percent of American consumers are now using peer-to-peer (P2P) mobile wallet apps, for example. This represents a noted reversal from trends of the past decade.
PYMNTS
MARCH 19, 2020
FDIC Approves Square for Banking License. The Federal Deposit Insurance Corporation (FDIC) granted Square a banking license to operate a de novo industrial bank in Salt Lake City. FinTech leader Fiserv has acquired independent software vendor Bypass Mobile, an innovator in the point-of-sale systems arena.
BankInovation
JULY 17, 2020
Fintechs looking to expand beyond their Bay Area or New York City headquarters have welcomed an unlikely visitor in recent years: Utah Gov. Gary Herbert. “The The governor is a great salesperson,” said Val Hale, executive director for the Utah Governor’s Office of Economic Development.
CB Insights
AUGUST 3, 2021
Mercury , a fintech company, has raised $120M in a Series B. The round drew participation from Coatue Management, Andreessen Horowitz, CRV, and Sapphire Ventures, among others. Mercury currently caters to more than 40,000 SMBs, managing over $4B in customer deposits in 200 countries. HOW’S THE COMPANY PERFORMING?
Fintech Labs Insights
APRIL 4, 2023
The new Mercury Vault ( company announcement , 13 March 2023 ) includes $5M of FDIC insurance (achieved by shipping deposits in excess of $250k to a network of 20 banks). The post Reacting Quickly to SVB Fallout, Mercury Launches Vault, with $5M FDIC Deposit Insurance first appeared on Fintech Labs SMB Center.
Abrigo
MAY 5, 2022
Thankfully for bank and credit union executives, lenders, risk managers, and Bank Secrecy Act (BSA) Officers, banking podcasts and podcasts for credit unions are plentiful, and options are growing. Breaking Banks Breaking Banks , billed as the #1 global fintech podcast and radio show, began in 2013 and is hosted by media firm Provoke.fm.
PYMNTS
AUGUST 16, 2019
“We already have an employee presence in these markets with talented securities, lending and treasury management professionals, and these offices will allow us to better access talent in these geographies,” he added. and offer clients FDIC-insured accounts. .” and offer clients FDIC-insured accounts.
Abrigo
FEBRUARY 12, 2020
“CRE loan performance metrics at FDIC-insured institutions are strong, although institutions with CRE concentrations may be vulnerable to economic changes,” The FDIC said in its 2019 Risk Review. Managing CRE portfolios will require lenders to follow best practices for underwriting and loan reviews. Learn More. Learn More.
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
PYMNTS
APRIL 24, 2019
In addition, Wealthfront works with FDIC-insured partner banks — including East West Bank , New York Community Bank and others — to hold customers’ deposits. Wealthfront launched as a company that offered financial planning, investment management and lending through its portfolio line of credit. It now manages $13.5
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