Bank-Fintech Partnership Enhancement Act (HR 6552)

Summary

The Bank-Fintech Partnership Enhancement Act is a bill that requires the Federal Reserve, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) to conduct a study on the impact of partnerships between banks/banking organizations and financial technology (fintech) companies.

Key Provisions:

1. The study will examine:

   • How these bank-fintech partnerships can support the formation of new banks and the health of community banks
   • The extent to which these partnerships reduce time to market for products/services, lower compliance burdens, boost customer acquisition, improve technology, and provide access to more funding sources
   • What changes to federal laws or regulatory guidance could help promote effective bank-fintech partnerships

2. The regulatory agencies must report their findings and recommendations to Congress within 1 year of the bill's enactment.

3. A separate study on credit union-fintech partnerships will be conducted by the National Credit Union Administration, with a report due within 1 year.

Impact:
- This bill aims to better understand how bank-fintech collaborations can support new bank formation and community bank viability, in the face of industry consolidation.
- The findings could lead to regulatory updates to facilitate beneficial partnerships and innovations that expand access to financial products and services.
- The credit union study provides a parallel perspective on fintech's role in the cooperative banking sector.

Overall, the Bank-Fintech Partnership Enhancement Act directs federal regulators to analyze an important trend in financial services and consider ways to foster productive collaborations between traditional institutions and emerging fintech players.