Recent FDIC consent orders show increased scrutiny of bank relationships with fintech partners

Reported by Kristen E. Larson & Kaley Schafer In February 2024, the Federal Deposit Insurance Corporation (FDIC) entered into consent orders with two banks who partner with fintechs to offer “banking as a service” (BaaS) related to safety and soundness, compliance with applicable laws, and third party oversight.  BaaS refers to arrangements in which banks integrate their […]