The website Pymnts writes on "Three Things to Watch as FDIC Tightens Up on FinTech." They tell us, "Several watchdogs and agencies are sharpening their gaze on FinTechs, specifically bank-​FinTech relationships and the risks tied to those partnerships. In July, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp. (​FDIC) and the Office of the Comptroller of the Currency (​OCC) issued a request for information on those partnerships and a statement that discussed the risks. 'The statement details the potential risks and provides examples of effective risk management practices for these arrangements,' the agencies said in a press release at the time. '​In addition, the statement reminds banks of relevant existing legal requirements, guidance and related resources, and provides insights that the agencies have gained through their supervision.'" It comments, "Although three agencies were involved in the July action, it may be the FDIC that winds up fundamentally altering the nature of the bank-​FinTech interactions, certainly when it comes to how those pacts are forged and how they operate day to day. The Synapse bankruptcy helped set that closer examination in motion." The piece adds, "The FDIC does not regulate FinTechs directly, but it oversees banks, so it has a hand in directing how traditional financial institutions work with digital innovators. It also has the ability to monitor FinTechs and has begun more closely tracking FinTechs that partner with banks, aiming to spot potential problems before they affect banks and track FinTechs as they switch banking partners. Beyond monitoring, actions on the part of the FDIC, including proposed rules, give insight into key regulatory themes. As the expanded list of actions that would be required of the banks indicates, banks will more closely vet those partnerships."

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