Third-party relationships are nothing new for banks and lenders, but working with financial technology (fintech) firms has brought about a new set of problems, and regulations, that all parties should be aware of.
In June 2023, regulators issued a long-anticipated joint update to the OCC’s 2013 guidance on risk management for banks engaging in third-party relationships. This new guidance provides risk management expectations when working with third parties, including fintechs.