On October 30, Republican congressmembers serving on the U.S. House Committee on Financial Services responded to a joint Request for Information (RFI) issued by the OCC, the Fed and the FDIC. The RFI solicited input on bank-fintech partnerships, including effective risk management practices and whether enhancements to existing supervisory guidance may be helpful in addressing risks associated with bank-fintech partnerships (as covered by InfoBytes here).
In their response, the congressmembers highlighted several benefits of bank-fintech partnerships, including offering low-cost and more accessible financial products, providing tailored financial applications, fostering competition, and increasing deposit bases for smaller community banks. They urged regulators to recognize the diversity of bank-fintech relationships and to draft regulations that address these specific relationships rather than adopting a “one-size-fits-all” approach. The congressmen also recommended that regulators collaborate closely with state authorities, who often charter and supervise fintech partner banks, and gain insights into their approaches to safety, soundness and consumer protection, “including through the creation of regulatory sandboxes at both the state and federal levels.”
The comment period for the RFI concluded recently on October 30.
