Banking Agencies Release Guide on Fintech, Community Bank Partnerships

The federal banking agencies today released a guide to help community banks asses risks when considering partnerships with fintech companies. The guide focuses on six key due diligence topics, including business experience and qualifications, financial condition, legal and regulatory compliance, risk management and control processes, information security and operational resilience.

The agencies said community banks should use the guide when performing due diligence on prospective relationship, but added that it is voluntary and does not cover all types of third-party relationships and risks.

The guide is written from a community bank perspective, the agencies said, but added that the fundamental concepts may be useful for banks of varying size and for other types of third-party relationships.