US banking regulators propose guidance to streamline risk rules for bank-fintech partnerships
What happened
The Federal Reserve, FDIC, OCC, and NCUA are seeking public comment on proposed third-party risk management guidance. The agencies also issued a joint statement on community bank engagement with core service providers, establishing a principles-based framework to lower compliance friction for commercial partnerships.
Why it matters
A principles-based standard provides lenders with clearer supervisory expectations when vetting technology vendors. Reducing compliance uncertainty helps community and regional banks adopt fintech software and digital infrastructure more efficiently while managing regulatory risk.
Bigger picture
The joint initiative reflects an effort by US financial authorities to bring non-bank technology providers further into regulatory oversight, balancing systemic risk controls against banks' increasing operational reliance on third-party infrastructure.
Watch next
Regulators will review public comments submitted during the formal feedback period before determining whether to finalize the guidance.