ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Newsbytes

FDIC proposes new recordkeeping requirements for bank-fintech partnerships

September 17, 2024
Reading Time: 2 mins read
FDIC’s Hill: Standards-setting organization could spur bank-fintech partnerships

The FDIC board unanimously voted today to advance a proposed rule to establish new recordkeeping requirements for banks that enter into arrangements with third-party fintech firms to provide deposit products and services. According to the agency, the rule would require FDIC-insured banks holding certain custodial accounts to maintain accurate account records so that the individual owner of the funds can be identified, including a requirement to reconcile the account for each individual owner on a daily basis.

“If a bank fails, the FDIC cannot pay deposit insurance to the depositors based on inaccurate or incomplete records,” FDIC Chairman Martin Gruenberg said. “Knowing the identity of the actual owners of the deposits — the so-called ‘beneficial owners,’ who are often consumers — and knowing their account balances are necessary for the deposit insurance to pass through the nonbank third-party company… to the actual owners of the funds.”

Gruenberg also cited the collapse of the fintech firm Synapse earlier this year as a reason a new rule was needed. That failure locked more than 100,000 U.S. customers with $265 million in deposits out of their accounts, according to CNBC.

The proposed rule would require banks to have “direct, continuous and unrestricted” access to the records of the beneficial owners, including in the event of a business interruption or bankruptcy of the third party. Banks would be required to establish and maintain written policies and procedures to ensure compliance with the rule’s requirements. They would be required to complete an annual certification of compliance, signed by an executive officer, stating that the institute has implemented and tested its recordkeeping requirements. They also would be required to file annual reports that, among other things, list the account holders that maintain custodial deposit accounts with transactional features, the total balance of those custodial deposit accounts, and the total number of beneficial owners.

While all five board members voted to advance the proposal, the two Republican board members expressed some concerns about the proposed requirements. FDIC Board Member Travis Hill said his vote shouldn’t be construed as support for the eventual final rule. “I have some pause whether it is fully within our statutory authorities, and I have some questions whether it reconciles with the existing regulations governing pass-through insurance,” he said.

Public comments on the proposal are due 60 days after its publication in the Federal Register.

Tags: DepositsFDICFintech
ShareTweetPin

Related Posts

Fed’s Waller remains unconvinced of need for CBDC

Fed’s Waller seeking ‘middle lane’ on ‘skinny’ master accounts

Compliance and Risk
February 9, 2026

Federal Reserve Governor Christopher Waller provided an update on the feedback the Fed received about a proposal to create “skinny” accounts for payment services, acknowledging that banks and financial technology firms want conflicting things from the proposed service.

ABA, groups urge FHA to improve loss mitigation options for borrowers

ABA backs bank-related provisions in housing bill

Community Banking
February 9, 2026

ABA voiced support for several provisions in a legislative package intended to boost housing availability in the U.S., including language to raise supervisory thresholds for community banks and to encourage new bank formation. The House later passed the...

CFPB launches ‘tip line’ to report on bureau employees

GAO releases first report on CFPB cuts

Newsbytes
February 9, 2026

The Government Accountability Office released the first of two reports on the Trump administration’s efforts to scale back the activities of the CFPB, providing a timeline of bureau layoffs and office closures.

New York Fed: Consumer inflation expectations mostly hold steady

New York Fed: Short-term inflation expectations improve slightly

Economy
February 9, 2026

Consumer inflation expectations in January remained unchanged at the medium- and longer-term horizons, and declined at the short-term horizon, according to the Federal Reserve Bank of New York’s most recent Survey of Consumer Expectations.

OFAC updates license application portal

OFAC launches online portal for self-disclosures of sanctions violations

Compliance and Risk
February 9, 2026

The Office of Foreign Assets Control has launched an online portal for individuals to submit voluntary self-disclosures of potential violations of OFAC-administered sanctions programs.

A secure digital process transformation to bank on

The keys to data-driven decision-making in bank marketing

Retail and Marketing
February 9, 2026

The essential ingredients are organized customer data and harnessing that data to produce smarter marketing programs.

NEWSBYTES

Fed’s Waller seeking ‘middle lane’ on ‘skinny’ master accounts

February 9, 2026

ABA backs bank-related provisions in housing bill

February 9, 2026

GAO releases first report on CFPB cuts

February 9, 2026

SPONSORED CONTENT

How Instant Payments Can Accelerate B2B Payments Modernization

How Instant Payments Can Accelerate B2B Payments Modernization

February 3, 2026
Digital Banking: The Gateway to Customer Growth and Competitive Differentiation

Digital Banking: The Gateway to Customer Growth and Competitive Differentiation

February 1, 2026
Planning Your 2026 Budget? Allocate Resources to Support Growth and Retention Goals

Why Every Digital Interaction Defines Your Brand Experience

February 1, 2026
Seeing More Check Fraud and Scams? These Educational Online Toolkits Can Help

Seeing More Check Fraud and Scams? These Educational Online Toolkits Can Help

November 1, 2025

PODCASTS

Podcast: How the SCAM Act would encourage platforms to go after scammers

February 4, 2026

A new kind of ‘community bank’ for small businesses

January 22, 2026

Podcast: A Lone Star banking perspective

January 15, 2026

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2026 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2026 American Bankers Association. All rights reserved.