Industry-Wide

In July 2024, the OCC, FDIC, and Federal Reserve released a joint interagency statement addressing risks associated with bank-fintech third-party arrangements. The statement covers safety and soundness issues, compliance failures, and consumer protection concerns that arise when banks partner with fintechs to deliver deposit, payment, and lending products. It provides examples of risk management practices for banks engaged in such arrangements. While the statement does not create new regulatory requirements, it signals heightened supervisory focus on the BaaS model and reinforces existing expectations for banks to maintain robust oversight of their fintech relationships.

Verified from source: The FDIC, Federal Reserve, and OCC issued a joint statement outlining potential risks related to arrangements between banks and third parties to deliver bank deposit products and services, along with examples of risk management practices. The joint statement does not establish new expectations or alter existing requirements.