In June 2025, the Federal Deposit Insurance Corporation (FDIC) unveiled a proposal to strengthen recordkeeping requirements for banks partnering with FinTech companies, aiming to protect consumers and improve transparency within the sector.
Under the proposed rules, banks would be required to identify the beneficial owners of each account and maintain detailed balance records. While third-party FinTech firms may keep these records, banks must retain unrestricted access to this data at all times, even in cases where the intermediary faces bankruptcy or insolvency. This measure is designed to ensure continuity and security of customer information regardless of disruptions.
The proposal follows the 2024 bankruptcy of Synapse Financial Technologies, a Banking-as-a-Service provider whose collapse caused numerous partner banks to freeze customer accounts. Regulators estimate that tens of thousands of customers were affected, raising urgent concerns about consumer protection and operational risks in bank-FinTech partnerships.
FDIC Chairman Martin Gruenberg emphasised the importance of the new rules. “Consumers must have timely and reliable access to their funds, even if a bank or its FinTech partner encounters financial difficulties.” He added that the proposal “sets clear expectations for accountability and transparency” in these collaborations.
This regulatory move reflects broader efforts by US authorities to oversee the rapidly evolving FinTech landscape, balancing innovation with consumer safety. Banks and FinTech firms will need to review their operational and legal frameworks to ensure compliance if the proposal becomes final.
Industry observers anticipate that the rules will prompt more rigorous due diligence and improved risk management practices across bank-FinTech ecosystems, ultimately strengthening trust in digital financial services.
