The Independent Community Bankers of America released a guide community bankers’ can use to work in partnership with financial technology (fintech) firms.
ICBA’s Fintech Strategy Roadmap, written in collaboration with Hunton & Williams LLP, shows how community banks can collaborate with or invest in fintech companies while ensuring they meet regulatory risk parameters.
“Continued success in the financial services industry depends on the adoption of banking practices that meet the evolving needs of the market,” ICBA Group Executive Vice President of Innovation and Technology Kevin Tweddle said. “Fintech companies offer potential partnerships and collaborative relationships that can help community banks enhance the customer experience and promote mutually beneficial relationships. Our goal in creating the roadmap was to help community banks as they engage in discussions with fintech firms and think strategically about how to navigate the decision-making process.”
The Fintech Strategy Roadmap, available exclusively to ICBA members, takes a deep dive into the legal and compliance elements associated with fintech partnerships. Specifically, it looks at strategic fintech opportunities, advantages of participating in the fintech space approaches to fintech for community banks, regulatory considerations, and risk factors to consider when evaluating fintech relationships.
“Community banks should base any foray into fintech on a strategic plan that accounts for risk management and their compliance framework before implementation,” Hunton & Williams Partner Peter Weinstock said. “Community banks have an excellent opportunity to shape their future by asking the right questions now. The Fintech Strategy Roadmap will help them do just that.”