TCH and the Bank Policy Institute jointly commented on partnerships between banks and fintechs in a letter to the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the Federal Reserve. The letter, submitted in response to a Request for Information from those agencies, calls for the banking regulators to exercise their authority to regulate and supervise fintechs directly so that banks are not forced to serve as quasi-regulators. It also emphasizes the need for more public education to help consumers better understand the potential risks of doing business with a nonbank, such as the potential unavailability of federal deposit insurance. The letter focuses on arrangements banks enter into with fintechs to enable the fintechs to directly provide end users with access to a range of banking products, such as checking or savings accounts, payments, lending products or digital wallets.

To access a copy of the letter, please click here.