Agencies Request Info on Third-Party Arrangements

On July 25, 2024, the FDIC, the FRB and the OCC requested additional information on a broad range of bank-fintech arrangements, including with respect to deposit, payments, and lending products and services. Additionally, the agencies issued a statement reminding banks of potential risks associated with third-party arrangements to deliver bank deposit products and services.

Through the Request for Information, the agencies are seeking input on the nature of bank-fintech arrangements to build on their understanding of these arrangements, including with respect to roles, risks, costs, and revenue allocation. The agencies are also seeking additional information and stakeholder perspectives relevant to the implications of such arrangements, including for banks’ risk management, safety and soundness, and compliance with applicable laws and regulations.

The agencies’ joint statement, on the other hand, notes potential risks related to arrangements between banks and third parties to deliver bank deposit products and services to end users. The statement also highlights examples of risk management practices by banks to manage such risks.

Read the FDIC’s press release here.

The Request for Information can be found here.

Read the joint statement here.

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