Bowman proposes streamlining rules on third-party partnerships

Feb 11, 2020

The Federal Reserve is working to empower community banks to embrace new technologies, Fed Governor Michelle "Miki" Bowman said. Bowman cited the Fed's innovation office hours and a new Fed webpage enabling bankers and tech industry participants to submit questions and request in-person meetings on third-party collaboration.

Bowman also proposed that regulatory agencies help community banks choose third-party providers, such as by publishing which ones are subject to agency supervision. And she advocated easing the due-diligence burden, such as by issuing clear guidance and allowing shared due diligence when multiple banks use the same provider.