The regulatory stance on bank-fintech partnerships has become more permissive, particularly regarding digital assets. Agencies have rescinded prior approval requirements for crypto-related activities and narrowed the CFPB’s focus. However, fundamental guidance on third-party risk management remains in full force. For community banks, partnerships can offer innovation and reach but require vigilant oversight.
What you should do: Do not mistake a permissive attitude for a lack of scrutiny. Any partnership must be underpinned by rigorous due diligence, clear contractual agreements, and ongoing monitoring. The responsibility for compliance and risk management ultimately rests with the bank.
Source: How Bank-Fintech Partnerships Changed In 2025 – Law360