The banking industry is optimistic about the role of bank/fintech partnerships that enable banks to bring customers the latest technology in a way that they can trust, American Bankers Association SVP Rob Morgan said today during an industry event.
“At the end of the day, community banks will not be able to build every single technology themselves, so being able to work with a wide array of startups to offer solutions to the end customer is key,” said Morgan.
Trust is everything, Morgan told attendees of an FDIC panel discussion on banking and fintech, adding that much of the trust that customers have in their banks stems from the regulatory structure and oversight that banks are subject to, as well as FDIC insurance. He warned that there is a risk of losing some of the trust customers have in banks if companies with new business models offering products and services that look like bank accounts are not subject to the same supervision and oversight as an FDIC-insured bank. “We need to make sure the regulatory definitions match up with some of those new business models,” said Morgan.
