WASHINGTON, D.C. – The Financial Technology Association (FTA) today issued a statement on the release of final interagency third-party risk management guidelines by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.
“We applaud the Federal Reserve Board, FDIC, and OCC for taking a coordinated approach to provide clarity for banks looking to adopt leading technologies and partner with related third parties,” said Penny Lee, President and Chief Executive Officer of the Financial Technology Association. “Today’s guidance acknowledges the benefits that third parties like fintechs provide and offers a constructive framework to mitigate identifiable risks, including for smaller banks that may face unique challenges in this context.”
In a comment letter submitted in response to the multi-agency request for comment, FTA urged regulators to acknowledge the benefits that third-party providers such as fintechs offer to increase the efficiency, reach, and capabilities of bank partners. The guidance explicitly recognizes those benefits, including “quicker and more efficient access to technologies, human capital, delivery channels, products, services, and markets,” and acknowledges the prevalence of bank relationships with fintech companies.
The Financial Technology Association (FTA) is a Washington, DC-based trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for modernized financial regulation to support inclusion and innovation.