The Innovative Payments Association Weighs In on Bank-Fintech Partnerships

The Innovative Payments Association (IPA) recently submitted a comment letter to federal regulators, who are considering new rules for partnerships between banks and fintech companies. The IPA urges the agencies to consider the potential negative consequences of additional regulations before imposing them.

The IPA believes these partnerships offer significant benefits to both consumers and the financial system, and, in the comment letter highlight several key points:

• Financial Inclusion: Fintech partnerships create products and services that bring underserved Americans into the mainstream banking system. This includes fee-free accounts, prepaid cards, and access to mobile banking.
• Consumer Benefits: Fintech innovation has led to convenient and secure financial tools like real-time account updates, easy checkout options, and budgeting tools. These advancements reduce reliance on costly alternatives like check cashing services.
• Community Bank Strength: Bank-fintech partnerships benefit community banks by providing a stable source of deposits and helping them compete in the current financial landscape.
• Existing Regulation: There's already a complex regulatory framework in place to oversee bank-fintech partnerships. This includes guidance from the FDIC, CFPB, and OCC.

Want to learn more?
You can download the full comment letter below, or contact the IPA.

Download the Comment Letter

Contact the IPA