The Office of the Comptroller of the Currency (OCC) is analyzing the complex array of arrangements between banks and financial technology companies (fintechs), as a step toward addressing the vulnerability to the banking system these relationships pose.
Banks benefit from partnerships with fintechs by getting access to tech innovation at a lower cost, while the latter benefits from affiliating with institutions with “trustworthy (reputations), long-standing customer bases, and access to cheaper capital and funding sources,” Acting Comptroller of the Currency Michael Hsu said in a speech at an industry event Wednesday.
