This article has been updated to include a link to the Federal Register notice seeking information, and comment deadline.
Banks were reminded of potential risks they face from third-party arrangements to deliver deposit products and services in a joint statement Thursday by the federal banking agencies.
The regulators also announced a call for information from banks on fintech arrangements, particularly regarding risk management.
In their statement, the agencies said supervisory experience has “has identified a range of safety and soundness, compliance, and consumer-related concerns with the management of these arrangements,” but conceded that the deals can provide benefits.
The agencies said their statement, however, details the potential risks and provides examples of effective risk management practices for the arrangements. The statement does not, the regulators said, establish new supervisory expectations.
They said the statement also reminds banks of relevant existing legal requirements, guidance, and related resources, and “provides insights that the agencies have gained through their supervision.”
Meanwhile, the regulators called for additional information “on a broad range of bank-fintech arrangements, including with respect to deposit, payments, and lending products and services.”
The agencies said they seek input on the “nature and implications of bank-fintech arrangements and effective risk management practices.”
They said they are considering whether additional steps could help ensure banks “effectively manage risks associated with these various types of arrangements” outlined in the announcement.
Comments are due by Sept. 30.