Consumer Compliance Outlook–special fintech edition
COMPLIANCE NEWS |
The Philadelphia Federal Reserve Bank has published a special fintech edition of Consumer Compliance Outlook. Fintech refers to the various products, services, processes and platforms that use technology to renovate all aspects of banking, including but not limited to, obtaining a loan, making payments, opening accounts and investing. Fintech provides the immediacy and convenience consumers have become accustomed to (downloading a movie, shopping, ordering groceries, arranging for services, etc.) to banking services.
As financial institutions continue to collaborate with fintech firms to provide renovated products or services to the institution’s customers, it is important for institutions to identify and address the present risks that must be controlled. Similarly to existing relationships, the financial institution must maintain a compliance management system and establish internal controls to mitigate the present risks. The articles in this issue of Consumer Compliance Outlook provide the regulators perspective of fintech, identify the pertinent actions of financial institutions and regulators, and provide insight to the federal laws and regulations that may impact relationships between institutions and their fintech firms.