Bill would require federal agencies to review bank-fintech partnerships

Senate lawmakers recently introduced a bill that would require banking agencies to review partnerships between fintechs and community and regional banks to evaluate their impact on communities..The Bank-Fintech Partnership Enhancement Act was introduced in the Senate June 16 by Sens. Pete Ricketts (R-Neb.) and Catherine Cortez Masto (D-Nev.) Introduced late last year in the House by Reps. Andy Barr (R-Ky.) and Josh Gottheimer (D-N.J.), the bill would mandate the Federal Reserve Board of Governors, OCC and FDIC to assess how bank-fintech partnerships benefit community bank health, and their impact on the banking sector through innovation, competition, consumer protection and the availability of financial products and services. The bill unanimously cleared the House Financial Services Committee late last year. “Emerging technology has revolutionized the banking sector, and it’s our responsibility to ensure that these new resources are safely and effectively put to work helping our communities,” said Cortez Masto. “By exploring how credit unions and community banks can best utilize fintech, we can expand access to banking services, protect the privacy of Americans’ financial information, and bolster consumer protections.”The American Fintech Council also supports the bill. “This legislation takes a pragmatic, data-driven approach to policymaking by ensuring Congress and regulators understand how these partnerships function in practice and how oversight can be strengthened without stifling innovation,” said Fintech Council CEO Phil Goldfeder.