Federal Reserve Bank of Philadelphia’s Post

In recent years, community banks have explored innovative approaches to provide high-quality financial services and products to their customers, often partnering with nonbank companies, including financial technology companies, or fintechs, to access new technologies and resources. In such partnerships, a fintech provides its end customers with access to a bank’s products and services. While these partnership arrangements vary, they commonly facilitate deposit-taking, payments services, and lending activities. This article provides an overview of the Federal Reserve’s supervisory approach to complex bank–fintech partnerships and discusses common risk factors associated with them: https://bit.ly/3Z5W5Xf

With a new administration taking office in January, the U.S. has a unique chance to reimagine banking regulation—balancing innovation with system stability. 👏 Carey Ransom, president of Operate and managing director of BankTech Ventures, explores why small banks—which make up the majority of U.S. financial institutions—are ideally positioned to serve as innovation laborites within the regulated banking system. Their deep community relations and local presence, make them the perfect testing grounds for new financial products. The surge in fintech partnerships and non-bank credit funds demonstrates the strong market demand for financial innovation. Rather than forcing this innovation into less regulated spaces, Ransom suggests we could channel it through the existing network of community banks—combining the security of regulated banking with the dynamism of financial innovation. Want to read more about Ransom’s insights and his vision for a new regulatory approach? Catch the full article here: https://lnkd.in/gw6tyNwT #FintechNews #Fintech #Banking #Banktech #BankingInnovation #CommunityBanks #FinancialRegulation #Innovation

The next generation of payments is here—and #Truist is here to guide you through it. Join me and @Tearsheet at The Big Bank Theory Conference on Sept. 5 in NYC, where I'll be sharing strategies for differentiation and navigating a dynamic market, uncovering key trends and innovations in this rapidly evolving landscape. Let’s connect at the conference to discuss how #Truist can be your trusted payments partner and help your business stay ahead of the curve. #TBBTConference2024 #SMBpayments #fintech #payments 

𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐦𝐨𝐝𝐞𝐫𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 is not progressing fast enough. Despite promises and expectations for a better future, interest groups who profit from the status quo are in no rush to remove hindrances, delaying the adoption of more efficient systems. Here are four simple ways we can accelerate modernization: · Regulatory support to encourage innovation and competition. · Align bank agendas with payment modernization · Investment in infrastructure to support new payment methods. · Education for users on the benefits and risks of these new systems. By balancing speed with safety and security, we can ensure that payments modernization benefits all users. Do you think banks are doing enough? Let's discuss how we can accelerate modernization while protecting against financial crime. #PaymentsModernization #Fintech #FinanceTransformation #payments

In Central America, where access to traditional banking services is limited for many, digital wallets offer a transformative solution to drive financial inclusion. Creating secure, easy to use platforms for transactions, digital wallets fill the gap for millions of unbanked and underbanked individuals, providing them with the tools to participate fully in the digital economy. These platforms offer a reliable way for people to save, pay, and even access credit, breaking down the barriers that have kept many out of the financial system. Let’s continue to test new models and push these digital solutions around customer centric strategies and work towards a financially inclusive Central America. #FinancialInclusion #DigitalWallets #CentralAmerica #EconomicEmpowerment #Fintech #Accion #Advisory

As a follow-up on one of my previous posts asking why people use banks other than Schwab and Fidelity...it seems even FinTech insiders make odd choices about where to bank. This Week in Fintech shared this survey result, showing that few Fintech professionals bank with fintechs. Where are they banking? It doesn't say. But some of them are with Bank of America and similar institutions. 🤦♂️ https://lnkd.in/g5nggP9v #fintech

⏳ The countdown to Money20/20 in the US is ON! We’re excited to discuss the future of fintech and digital banking. What do you think is the biggest trend shaping the fintech industry in 2024? Drop your thoughts in the comments below, or better, let’s chat in person! Book a meeting with Velmie at Money2020! #Fintechtrends #Money2020 #Velmie #MeetVelmie #fintech

How we deliver first class products and services to ALL is important - we at SaaScada deliver through our cloud based banking platform an inclusive approach for banks serving both poor and not so poor communities . Technology is a real enabler and something at the heart of many of the banks who at Global Alliance for Banking on Values deliver real change - one transaction at a time https://lnkd.in/etDACigq

How can community banks effectively navigate the evolving landscape of fintech innovation through Banking-as-a-Service partnerships? 🏦 In our recent blog, Sarah Sholar, CAMS CBAP, BSA Officer at Emprise Bank, shares her perspective on the intersection of community banking and fintech innovation in the BaaS landscape. From the pivotal role of community banks in fintech, the surge in BaaS adoption, to increased regulatory scrutiny, Sarah explores the challenges and opportunities shaping the future of banking. 🔮 "Banking-as-a-Service is not a fleeting trend; it demands a long-term dedication to hiring the right people, developing necessary programs, and establishing robust oversight processes". 💡 Join the conversation and read all of Sarah’s insights* here: https://hubs.li/Q02ptWBj0 #Banking #Fintech #BaaS #AMLCompliance *The views expressed by Sarah Sholar on this blog post are hers alone and do not necessarily reflect the views of her employer.

In recent years, community banks have explored innovative approaches to provide high-quality financial services and products to their customers, often partnering with nonbank companies, including financial technology companies, or fintechs, to access new technologies and resources. In such partnerships, a fintech provides its end customers with access to a bank’s products and services. While these partnership arrangements vary, they commonly facilitate deposit-taking, payments services, and lending activities. This article provides an overview of the Federal Reserve’s supervisory approach to complex bank–fintech partnerships and discusses common risk factors associated with them.