WASHINGTON, D.C. – The Financial Technology Association (FTA), a trade group representing fintech industry leaders, released a statement commending the final third-party risk management guide for community banks issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.
“Bank partnerships are the engine for financial innovation and inclusion, helping put financial services in the hands of more consumers, small businesses, and entrepreneurs,” said Penny Lee, President and Chief Executive Officer of the Financial Technology Association. “We commend regulators for releasing this guidance that acknowledges the benefits of bank-fintech partnerships for banks of all sizes. Looking ahead, we urge regulators to ensure examiners are properly equipped to evaluate bank-fintech partnerships in a way that preserves access to valued financial tools and doesn’t stifle innovation.”
FTA previously applauded the agencies for taking a coordinated approach to finalizing the third-party risk management guidelines for banks. This companion guidance for community banks will help facilitate compliance for smaller institutions that seek to partner with third parties to reach new customers, augment their technological capabilities, or compete with larger institutions. To learn more, read FTA President and CEO Penny Lee’s column in Forbes, “How Bank-Fintech Partnerships Make Banking Better For Consumers And Small Businesses.”
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The Financial Technology Association (FTA) is a Washington, DC-based trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for modernized financial regulation to support inclusion and innovation.