Federal agencies remind banks of potential risks associated with third party deposit arrangements and request information on bank-Fintech arrangements

The federal bank regulatory agencies have issued a statement reminding banks of potential risks associated with third-party arrangements to deliver bank deposit products and services. 

The agencies support responsible innovation and banks engaging in these arrangements in a safe and sound manner and in compliance with applicable law. While these arrangements can provide benefits, supervisory experience has identified a range of safety and soundness, compliance, and consumer-related concerns with the management of these arrangements. The statement details the potential risks and provides examples of effective risk management practices for these arrangements.

To read the full press release, please click here to visit the FDIC site.