Pub. 10 2021 Issue 1

18 Reserve plans to publish a white paper early next year on community bank partnerships with fintech companies and effective practices for managing those arrangements.” Bowman went on to say these partnerships can promote a “diversity of choice and accessibility” for customers, improve efficiency and regulatory compliance, and more. In addition to this announcement, Bowman said the agency will launch a pilot program next month to help roll out the FedNow instant payments service as soon as possible. The ICBA has urged the Federal Reserve to collaborate with community banks to swiftly implement FedNow. In addition to these encouraging changes, it was stated at the summit that “Congress is charged with staying ahead of fintechs seeking bank-like powers without regulatory oversight.” These announcements help solidify that fintech companies are not going anywhere and their presence in the financial world will continue to grow and gain financial strength. While not all financial institutions are ready to begin a partnership with a nontraditional company, it is a great step forward knowing that if and when they do, there will be guidance and support from the regulators to provide a more clear and concise path than what we have had in past years. Rachael is a member of the BKD National Financial Services Group. She works closely with financial institutions and financial technology companies to help reduce risk in regulatory compliance. If your bank has partnered with a fintech or similar nonbank company to enhance or add to the financial services you offer, one key risk mitigant is compliance training. BKD CPAs & Advisors has developed a site to support banks with training laser-focused on compliance risks related to third-party relationships. Visit bkd.com/theconservatory for more information. This article is for general information purposes only and is not to be considered as legal advice. This information was written by qualified, experienced BKD professionals, but applying this information to your particular situation requires careful consideration of your specific facts and circumstances. Consult your BKD advisor or legal counsel before acting on any matter covered in this update. The ICBA has urged the Federal Reserve to col laborate wi th communi t y banks to swi f t ly implement FedNow. In addi t ion to these encouraging changes, i t was stated at the summi t that “Congress is charged wi th staying ahead of fintechs seeking bank-l ike powers wi thout regulatory oversight .” continued from page 17