American Fintech Council (AFC) CEO, Phil Goldfeder, recently commented on the release of the Joint Agency Third Party Risk Management Guide, emphasizing the positive impact of innovative banks and fintech companies on the financial services sector.
Goldfeder highlighted the transformative role of these institutions, stating, "Innovative banks and fintech companies have responsibly transformed the way families bank, lend, and transact. They have leveled the playing field and created critical access to financial services for consumers and small businesses long forgotten by traditional institutions."
Regarding the newly released guide, Goldfeder expressed optimism, noting, "The Third Party Risk Management Guide for Community Banks provides useful clarity around bank-fintech partnerships. It will help identify the risks, roles, and responsibilities to keep community banks competitive without compromising on consumer safety."
He further emphasized the importance of proper assessment of risks in bank-fintech partnerships, stating, "While this guide provides important clarity for banks and fintech companies, it is equally important that examiners ensure they are properly assessing the risks posed by such partnerships."
In urging collaboration between responsible innovators and regulators, Goldfeder asserted, "Responsible innovators in collaboration with pragmatic regulators can help root out bad actors and ensure strong industry-wide compliance and responsible capital management."
While acknowledging the guide as a positive step, Goldfeder called for increased engagement between federal regulators, state regulatory agencies, and policymakers to address regulatory inconsistencies and ensure consistent examination and enforcement across the industry.