25
The Changing FinTech Landscape: A Snapshot of M&A Themes and Trends
In addition, federal regulation of banking activities is spread
across several bank regulatory agencies whose interests
in bringing certain bank-FinTech partnerships under their
regulatory umbrellas may compete with those of prominent
state bank regulatory agencies, such as those in California,
New York, and Utah.
Recent litigation between state and federal regulatory
agencies, in addition to rules promulgated by federal regulatory
agencies in an effort to both clarify regulatory uncertainty for
the industry and prevent so-called "rent-a-charter" schemes
in which FinTech companies circumvent (intentionally or not)
certain state or federal licensing requirements, present an
ongoing challenge to banks and FinTech companies seeking to
offer innovative products and services across U.S. state borders.
Banks entering into partnerships with FinTech companies must
stay up to date with developments in this space and ensure
that their relationships do not run afoul of both existing and still
percolating regulatory requirements.
Insert pull-quote
With increased
innovation in FinTech
also comes more
sophisticated bad
actors who attempt to
illegally access data,
defraud customers
and companies, and
launder money.
