H.R. 6552: Bank-Fintech Partnership Enhancement Act

The proposed legislation, known as the Bank-Fintech Partnership Enhancement Act, aims to explore the relationship between banking organizations and financial technology (fintech) companies. The bill mandates a comprehensive study by the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation on how these partnerships can contribute to the formation of new banks and support the health of community banks.

Key Objectives of the Study

The study will focus on two main areas:

• Partnership Benefits: Investigate how collaborations between banks and fintech firms can facilitate the establishment of new banking entities and promote the sustainability of community banks. This includes assessing the potential advantages such as:
• Reducing the time needed to bring banking products and services to market.
• Lessening the regulatory compliance burdens that banks face.
• Enhancing customer acquisition efforts.
• Improving technological capabilities within traditional banking systems.
• Broadening access to diverse funding sources for banks.
• Legal and Regulatory Changes: Identify any modifications to existing federal banking laws or the regulatory framework that might encourage effective collaborations between banks and fintech firms.

Reporting Requirements

Within six months of the bill’s enactment, the aforementioned regulatory bodies are required to prepare and submit a report to Congress. This report will summarize the findings from the study and provide recommendations based on their conclusions regarding bank-fintech partnerships.

Definitions

The term "banking organization" in the context of this legislation refers to entities defined as depository institution holding companies or insured depository institutions, as established under federal law.

Relevant Companies

None found