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ARTICLE · 18 MAY 2023

FDIC Enters Into Consent Order With Fintech Focused Bank

Morrison Foerster
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Reflecting expected heightened regulatory scrutiny of fintech-bank partnerships, the Federal Deposit Insurance Corporation (FDIC) issued a consent order...

United StatesTechnology
Crystal Kaldjob
Crystal Kaldjob
Maria B. Earley
Maria B. Earley
Calvin Dennis Funk
Calvin Dennis Funk
Jason Nerland
Jason Nerland
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Reflecting expected heightened regulatory scrutiny of fintech-bank partnerships, the Federal Deposit Insurance Corporation (FDIC) issued a consent order for a bank that is deep in the bank-fintech sponsorship space over alleged "unsafe or unsound banking practices" relating to its compliance with fair lending laws and regulations. The bank often partners with fintech and digital asset companies to offer banking services to consumers. According to the FDIC, the bank allegedly failed to establish and maintain internal controls, information systems, and prudent underwriting practices, but the FDIC did not delve into the specific practices that caused it to issue the order.

Key Consent Order Requirements

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