skip to Main Content
MSJ NEWS see latest news

Federal Reserve Issues Paper on State of Fintech, Community Bank Relationships

  • Federal Reserve issues paper exploring the current state of relationships between community banks and financial technology companies
  • Report covers the benefits and challenges of such partnerships, as well as the key factors for success
  • Document is a follow-up to previous diligence on how banks can ensure due diligence when forming partnerships with fintechs

Summary by Dirk Langeveld

The Federal Reserve has released a paper exploring the state of partnerships between community banks and financial technology companies. The report, based on discussions with these entities and other stakeholders, is designed as a resource for community banks seeking to improve their services by incorporating fintech.

The 21-page paper covers the types of partnerships and their benefits and challenges, as well as the key factors partners say are necessary for success. The relationships covered include banks using fintech to improve their own operations, enhance their customer-facing services, or update their own infrastructure with fintechs interacting directly with customers.

The report also identifies a commitment to innovation, thoughtful approach to connectivity, and alignment in priorities and objectives as major factors for success.

The Fed previously issued guidance to community banks on effective due diligence when forming partnerships with fintechs.

Spread the Word

More To Explore

Expert Summaries

Know Your Competitors

By Denis Jakuc 

There are tons of benefits to knowing who your competitors are—what they’re offering, their strengths and weaknesses. That knowledge can help you make your products and services stand out,

Latest News

Join with Free InnovatorsLINK Account

Start accessing all the free member benefits and valuable content on the InnovatorsLINK platform. Create a BizLINK listing to boost brand exposure, receive the weekly Main Street Journal newsletter, engage in forums, get full access to free content, and more.