A recent column from Federal Reserve Gov. Michelle Bowman provides an update on regulatory efforts to promote community bank innovation and partnerships with fintech firms.
Background: The article in the Philly Fed’s compliance publication outlines types of community bank-fintech partnerships, including customer-oriented, operational, and banking-as-a-service partnerships.
Reg Update: Bowman also says the Fed is planning a paper on partnerships during the second quarter and is working with other agencies on a vendor due diligence guide and interagency guidance for third-party risk management.
ICBA Position: ICBA supports these policy initiatives on behalf of fintech partnerships, which are in line with ICBA recommendations from recent years. Read the article.