FDIC Calls for Transparency in Bank-FinTech Deals
Hey FinTech Fanatic!
The Federal Deposit Insurance Corporation (FDIC) has extended the commentary period for its proposed rule on Bank-FinTech relationships to January 16, 2025. The rule focuses on recordkeeping requirements for FDIC-insured banks holding custodial accounts from third-party, non-bank companies.
"The evolution of banking and financial services has increasingly included Non-Bank FinTech companies offering consumers new options and alternatives for accessing banking products and services," states the FDIC in the Federal Register. The proposed rule, triggered by the Synapse bankruptcy case, would require banks to maintain accurate daily records identifying individual fund owners in custodial accounts.
The Bank Policy Institute and seven other financial services organizations have requested that the FDIC first consider their input on Bank-FinTech arrangements from a separate RFI before implementing new custodial recordkeeping requirements addressing these same arrangements.
What impact do you think these stricter recordkeeping requirements will have on Bank-FinTech partnerships? Share your thoughts in the comments!
Stay tuned for the latest updates. In the ever-evolving world of FinTech, being informed is your best asset 😉
Cheers,
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