10 Considerations For Fintechs Partnering With Community Banks

As banking and technology become more integrated, banks are increasingly partnering with fintechs to expand their customer offerings. The rapid rise of these partnerships has generated questions for both banks and fintechs on how to manage resulting regulatory and financial risks.

On May 3, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (collectively, "the agencies") released final joint guidance for community banks on managing risks associated with third-party partnerships.¹ This guidance builds on previous interagency guidance for all banks entering into third-party partnerships, which we discussed in our June 2023 Fintech Flash.