🎧 Regulators Escalate Focus on the Risks of Bank Relationships with Fintechs and Other Third Parties | Consumer Finance Monitor Podcast by Ballard Spahr
Federal banking agencies (Federal Reserve, FDIC, and OCC) issued two significant documents: a joint statement on third-party arrangements and a Request for Information (RFI) on bank-fintech partnerships. The initiative aims to evaluate potential risks in these partnerships and determine if additional supervisory guidance is needed.
Ballard Spahr attorneys discuss the implications of these for banks and their non-bank partners, exploring the RFI's scope, likely respondents, and key regulatory concerns about third-party relationships. The episode also covers practical advice for banks considering new fintech partnerships and recommendations for strengthening existing third-party arrangements.
▶️ Bank-FinTech Collaboration Key to Accelerating Open Banking Adoption | PYMNTS TV
The financial services industry is experiencing a fundamental shift driven by consumer demand for instant, seamless banking experiences. While traditional banks have established a sense of trust, their legacy systems prevent innovation. As a result, there has been an increase in collaboration between banks and FinTech firms - combining traditional banks' expertise and trust with FinTech's agility and ability to innovate continuously.
Despite legacy infrastructure and varying regulatory frameworks across regions, these partnerships are becoming crucial for delivering modern financial services and meeting evolving customer expectations.
📊 52% of Gen Z and Millennial Consumers Say They Might Give Community Banks a Try | PYMNTS
Community banks and credit unions are gaining traction with younger generations, with 52% of Gen Z and millennial consumers considering switching to community banks and 47% to credit unions. This shift is driven by demands for personalized service and enhanced security, as shown by 54% of customers expecting their financial institutions to leverage existing data for better experiences.
While digital capabilities remain crucial, these smaller institutions are well-positioned to compete by combining their traditional strength in personal service with modern technology. Security is a key differentiator, with 91% of consumers prioritizing data protection when choosing a financial institution.
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