Search Results for "FDIC"
28 results for "FDIC"
Deals 20
FDIC Targets Stablecoin Licensing by Year-End 2025; Fed Plans Fintech Master Accounts by Q4 2026
Federal banking regulators previewed timelines for key fintech and digital asset rules in December 2025. The FDIC is targeting stablecoin licensing guidance by year-end 2025, while the Federal Reserve aims to establish 'skinny' master account access for novel charter holders by Q4 2026. These developments could significantly impact BaaS and embedded finance infrastructure.
Circle, Ripple, Wise, and Erebor File OCC Bank Charter Applications
Circle, Ripple, Wise, and Erebor Bank submitted federal national bank or trust charter applications to the OCC. Trust charters limit activities to non-deposit and non-lending functions, while Erebor seeks a full-service charter with FDIC insurance. The filings reflect growing fintech demand for direct banking authority.
Branch Partners with Lead Bank to Expand Workforce Payments Platform
Branch added Lead Bank as a new strategic banking partner and card issuing sponsor for its workforce payments platform. Lead Bank, a state-chartered FDIC member bank with a BaaS platform, will support Branch's digital banking accounts, debit cards, and white-label payment products. The partnership enables Branch to scale across hospitality, gig platforms, staffing, construction, logistics, and agriculture.
FDIC Signals Openness to Fintech Charter Applications Under Acting Chair Hill
The FDIC under Acting Chairman Travis Hill highlighted policy priorities in April 2025 that signal greater openness to fintech banking applications, including industrial bank charters and crypto-related activities. This shift could accelerate the path for fintechs seeking deposit insurance and banking licenses. The announcement is part of a broader deregulatory trend affecting the BaaS and embedded finance landscape.
US Regulators Intensify Scrutiny of Bank-Fintech Partnerships in October 2024
In October 2024, the OCC, FDIC, and Federal Reserve received multiple comment letters on bank-fintech partnership risks. Submissions addressed supervision gaps, deposit-taking risks, and examination authority over fintechs. Fed Governor Bowman called for uniform regulations across banks, credit unions, and fintechs. FDIC consent orders requiring banks to offboard fintech partners signaled escalating enforcement.
Green Dot Debuts Arc Embedded Finance Platform for Scalable Banking Products
Green Dot launched Arc by Green Dot, a cloud-based embedded finance platform providing FDIC-insured banking products, money processing, payment APIs, fraud protection, and access to U.S. deposit and ATM networks. The platform targets businesses seeking scalable banking infrastructure. As a regulated bank itself, Green Dot positions Arc as a direct-from-bank embedded finance offering.
FDIC Approves Heightened Merger Scrutiny and Recordkeeping Rules for Banks
The FDIC finalized policy updates increasing scrutiny for bank merger and acquisition applications, requiring more detailed information on concentrations beyond deposits. The OCC also updated its BMA processes, eliminating expedited reviews for certain cases. These changes affect the regulatory landscape for bank-fintech partnerships that rely on bank M&A structures.
FDIC Proposes New Recordkeeping Requirements for Sponsor Banks in BaaS
The FDIC unanimously approved a proposed rule requiring sponsor banks to maintain direct, continuous, and unrestricted access to records of beneficial account owners in pooled accounts. The rule emerged from concerns highlighted by the Synapse collapse and mandates daily reconciliation of beneficial ownership. This represents a major tightening of compliance standards for banks operating BaaS partnerships.
FDIC Proposes New FBO Recordkeeping Rules for Bank-Fintech Partnerships
The FDIC proposed new recordkeeping requirements on September 17, 2024, targeting for-benefit-of (FBO) accounts used in bank-fintech partnerships. The rule directly responds to the Synapse bankruptcy fallout, which left a $65–95 million shortfall. CFPB Director Chopra cautioned against 'a new form of rent-a-bank' arrangements, signaling heightened regulatory scrutiny of the BaaS model.
FDIC, OCC, and DOJ Finalize Stricter Bank Merger Review Policies
U.S. federal regulators including the FDIC, OCC, and DOJ finalized updated bank merger review policies on September 17, 2024, increasing scrutiny for deals involving insured depository institutions. The changes have significant implications for bank-fintech M&A transactions and BaaS partnerships, as acquirers of fintech or nonbank firms face heightened review requirements. The updated framework adds broader jurisdictional reach and more extensive application data requirements.
US Banking Agencies Issue Joint RFI on Bank-Fintech and BaaS Arrangements
The OCC, FDIC, and Federal Reserve jointly issued a Request for Information (RFI) scrutinizing bank-fintech arrangements, including BaaS and middleware platforms. The RFI specifically targets intermediate platform providers that connect banks to fintechs via APIs. Regulators seek input on risk management, compliance practices, and potential new supervisory guidance. Comments were due approximately 60 days after the July 31, 2024 Federal Register publication.
FDIC Issues Consent Order Against Thread Bank Over BaaS Oversight Failures
The FDIC issued a consent order against Thread Bank, a BaaS sponsor bank, for inadequate oversight of its fintech partners in embedded finance. The order, issued in May 2024 and made public in July, requires enhanced risk assessments and board-approved thresholds for fintech partnerships. This was part of a broader wave of regulatory actions targeting over 25% of FDIC-supervised BaaS banks in 2024.
GM Financial Withdraws ILC Charter Application from FDIC
GM Financial withdrew its 2020 industrial loan company charter application from the FDIC on June 17, 2024, despite having received conditional approval from Utah's Department of Financial Institutions just days earlier. The automaker's finance arm indicated plans to refile at a later date. The withdrawal came three days after the FDIC approved Thrivent's competing ILC application.
FDIC Approves Thrivent Financial ILC Charter, First in Four Years
The FDIC approved an industrial loan company charter for Thrivent Financial for Lutherans on June 14, 2024, the first ILC approval since Block and Nelnet in 2020. The new Thrivent Bank will be based in Salt Lake City and will absorb Thrivent Federal Credit Union. The approval followed a February 2021 application and prior conditional approval from Utah's Department of Financial Institutions.
FDIC Proposes Revisions to Bank Merger Approval Policy
The FDIC proposed revisions to its policy on bank merger transactions, clarifying the approval framework for bank consolidations. Published in the Federal Register on April 19, the proposal could complicate large bank deals including those involving BaaS sponsor banks. The revisions signal heightened regulatory scrutiny of banking consolidation.
FDIC Issues Consent Orders to Piermont Bank and Sutton Bank Over BaaS Failures
The FDIC issued consent orders against Piermont Bank and Sutton Bank for compliance failures related to their BaaS partnerships, particularly around Bank Secrecy Act obligations. Sutton Bank, which partners with fintechs including Robinhood, Square, and Upgrade, was required to collect customer data retroactively back to July 2020. The actions signal intensifying regulatory pressure on sponsor banks operating in the BaaS space.
FDIC Issues Consent Order Against Choice Financial Group for BSA Violations
The FDIC publicized a consent order against Choice Financial Group (related to Choice Bank) for BSA violations and weak oversight of third-party fintech relationships. The action stemmed from a June 2023 examination and highlights continued regulatory focus on banks that serve as BaaS partners. Choice Bank is another in a growing list of sponsor banks facing enforcement actions.
Treasury Prime, FirstBank, and High Circle Launch High-Yield BaaS Checking Accounts
Treasury Prime partnered with FirstBank and High Circle to launch a suite of high-yield commercial checking accounts as an embedded banking program. The accounts target high-net-worth individuals and businesses, offering up to $125M in FDIC insurance via the Intrafi network. Treasury Prime provides the BaaS software layer integrating the fintech and bank partners.
OCC Approves Zero Fintech De Novo Bank Charters Under Acting Comptroller Hsu
As of October 2023, the OCC had not approved any de novo bank charter applications from fintech companies since Acting Comptroller Hsu took office. More than half of fintechs that filed since 2017 withdrew their applications. This regulatory freeze has pushed fintechs toward acquiring existing banks rather than building new ones.
Savi Financial Receives FDIC Approval for De Novo Orca Bank Charter
Savi Financial Corp. received FDIC approval in 2023 for a Washington state-chartered de novo bank called Orca Bank. The company still required Federal Reserve approval and targeted a Q1 2024 opening. The approval is notable given the extremely challenging environment for new bank charters, especially for fintech-adjacent applicants.
Regulatory Actions 8
Industry-Wide
The FDIC published a speech or update on reforms to its regulatory toolkit, potentially addressing BaaS and third-party risk management supervisory approaches.
Unknown Sponsor Bank
The FDIC released documents related to its supervision of crypto-related activities at banks, signaling a reevaluation of earlier pauses on crypto and fintech partnerships. This reflects evolving supervisory approaches to fintech innovation.
Sutton Bank
Sutton Bank faced FDIC examination and potential enforcement action related to its bank-fintech relationships. CEO J. Anthony Gorrell was reportedly involved in the heightened oversight.
Industry-Wide
The OCC, FDIC, and Federal Reserve issued a Request for Information seeking public comments on risks in bank-fintech arrangements, including accountability gaps, end-user confusion, rapid growth, concentration, liquidity, and data ownership.
Industry-Wide
The OCC, FDIC, and Federal Reserve jointly issued a statement reminding banks of risks in third-party arrangements with fintechs for delivering deposit, payment, and lending products. The statement outlines risk management examples without creating new rules.
N/A — Industry-wide joint statement
The OCC, Federal Reserve, and FDIC jointly issued a statement on July 25, 2024, highlighting risks in third-party arrangements for bank deposit products and services. The statement emphasizes that banks retain full accountability for consumer protection, financial crimes prevention, and safe/sound practices despite outsourcing to fintechs.
N/A — Industry Guidance
Federal banking agencies (Federal Reserve, OCC, FDIC) issued joint guidance in August 2021 advising community banks on conducting due diligence when entering fintech partnerships. The guidance emphasizes risks including legal/regulatory compliance, AML, consumer protection, and contract terms.
Industry-Wide (All FDIC-Supervised Banks)
The FDIC finalized a new brokered deposits rule on December 15, 2020, that excluded certain fintech-bank arrangements from brokered deposit restrictions. The rule was supportive of BaaS partnerships rather than punitive.