The following is an excerpt from today’s Global Newsletter.
Bank-fintech partnerships have been a thing for over a decade, but there has never been comprehensive guidance on managing these.
This week the FDIC, OCC, and the Fed produced a 68-page interagency report detailing how banks should manage third-party relationships.
The TL;DR is that banks must do more to monitor their fintech partnerships, but this should lead to healthier and more productive relationships. Banks will now be more demanding of their fintech partners, so we all need to be ramping up compliance too.
At least this provides clarity…something sorely missing in the crypto space.
|FDIC, Fed, OCC finalize guidance for banks’ third-party partnerships
By Catherine Leffert
The interagency report recommends practices for financial institutions to manage relationships with fintechs and other third parties.
From Fintech Nexus
| Global The Fintech Five news recap for June 9, 2023
By Todd Anderson
The Fintech Five brings you the top five stories of the week in under two minutes, delivered via newsletter, website, and social media channels.
| Global Harness power of API-first card issuing approach for customized future-ready experience
By Anil Goyal
Adopting an API-first approach to card issuing allows fintechs to create personalized payment solutions tailored to their customers’ needs.
| USA The global state of real-time payments
By Isabelle Castro Margaroli
FedNow’s launch is imminent, but the U.S. is lagging behind the rest of the world on real-time payments. It may be an advantage.
| Global Fraud Fight Club lives up to the hype
By Todd Anderson
Expert speakers from banks, credit unions, lending institutions, fintechs, and beyond engaged in spirited conversation inside our makeshift boxing ring.
| Unmasking Sanctions Evasion: Trends, Challenges, and Solutions
June 15, 2 p.m. EDT
One of the most crucial components of compliance is sanctions screening, which entails identifying and blocking transactions…Register Now
|June 20: Challenges and Opportunities of Digital CreditRegister Now|
Also making news
- USA: Binance halts trading in dollars on Binance.US Banks have signaled that they will stop working with the company’s American branch, it said, after the Securities and Exchange Commission sued it this week.
- USA: Binance court filings shed light on relationship with failed banks, Gensler The now-SEC chief offered to serve as a Binance advisor in 2019, Binance’s legal team alleges. The filing also details billions of the exchange’s dollars funneled through Silvergate and Signature.
- USA: New crypto banking system arises under shadow of regulatory crackdown Crypto’s new banking system is more fragmented, less U.S.-centric, and, at times, less advertised.
- USA: Custodia lands court win after judge denies Fed request to dismiss ‘Master Account’ lawsuit “We look forward to the court’s review of this power grab by the Fed,” said Custodia after a judge denied the Fed’s motion to dismiss the lawsuit.
- USA: At banks targeting underserved, loans spiked after feds gave capital After banks and credit unions received funding from a federal program designed to shore up the capital of institutions that serve under-resourced communities, they sharply increased their lending, according to new research findings.
- USA: BNY Mellon and MoCaFi bring digital payments to underserved across U.S. BNY Mellon, and MoCaFi have formed a strategic alliance to extend payment options to unbanked and underbanked communities in the U.S.
- USA: AmEx inks data-sharing deals with Plaid and Yodlee American Express has formed data-sharing agreements with Plaid and Yodlee to offer card members the option to connect to thousands of third-party financial apps and services.
- USA: SEC crypto action leaves stablecoins in limbo Authorities have still not made clear when stablecoins are considered securities or how they will be regulated.
- USA: Inside the culture clash at JPMorgan and WePay When JPMorgan Chase struck a $400 million deal to buy WePay in late 2017, it pledged that the Bay Area fintech would become “Chase’s payments innovation incubator in Silicon Valley.” But it didn’t all go to plan.
- USA: As tides shift against screen scraping, complications abound for small FIs Last year, we covered the pressure building on community banks to move away from screen scraping, a practice that can cause issues like limited visibility, broken links in data sharing, data portability as well as fragmentation in customer experiences.
- Europe: Anne Boden stepped down as Starling CEO after investor clash Founder of the digital bank had said she was leaving over a potential conflict of interest.