Magazine : Archives : 4th Quarter 2022

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A Regulator Calls Out Technology Risk The explosion of fintech partnerships is changing banking — and the risk profile of banks — “in profound ways,” warned Acting Comptroller of the Currency Michael Hsu in a recent speech. Fintechs are creating “an increasingly varied and complex set of arrangements” with banks that are “significantly more intricate” than past outsourcing arrangements, said Hsu in prepared remarks for the Sept. 7 speech. These partnerships, which include digital banking, deposit and loan products, or business lines like embedded banking or banking as a service (BaaS), are creating a new and complicated risk landscape for...