As banks become increasingly reliant on third-party service providers, Federal Reserve Governor Michelle Bowman said bank regulators should “consider the appropriateness of shifting the regulatory burden from community banks to more efficiently focus directly on service providers.”
“The crux of the issue is that ultimately the bank has to have a strong oversight and management system.”
The Federal Reserve today published for comment updates to the proposed guidelines it will use when evaluating requests for master accounts with the Fed or access to the agency’s financial services.
Banks that embrace innovation and harness the power of data and new technology—while remaining focused on customer service basics—will be well-positioned for future growth and resilience.