It is my expectation that the combination of refreshed and aligned interagency guidance and the community bank due diligence guide will meaningfully enhance clarity on supervisory expectations for community bank partnerships with fintech companies. There are also opportunities within our existing supervisory program to improve our regulatory response to innovation, without creating additional burden for community banks.
The federal banking agencies’ service provider supervision program plays an important role in assessing the rigor of risk management and controls at key service providers. It is important that reports of supervisory assessments be readily available to banks that rely on service providers so that banks can use the reports to support their third-party risk management.