Power Panel: Third-Party Risk Management - How Should Fintechs, Cryptocurrency Businesses & Sponsor Banks Manage Risks And Regulatory Expectations Related To Third Parties?
Power Panel: Third-Party Risk Management - How Should Fintechs, Cryptocurrency Businesses & Sponsor Banks Manage Risks And Regulatory Expectations Related To Third Parties?

Research shows that 75% of global banks intend to connect to an average of three fintechs or service providers within the next 18 months to achieve digitization – what are the risks associated with these arrangements? The new Interagency Guidance on Third-Party Relationships is more prescriptive than previous versions and provides details on how banks should perform due diligence on the legal and regulatory compliance of third-party vendors by comprehensively evaluating their ownership structures, exposure to sanctions and responsiveness to compliance issues. How can banks achieve this? You can outsource the activity but not the responsibility: what tools and technologies are available to help banks do an assessment of their third-party risk management programme to see if there are any gap or pitfalls against the guidance? Should fintechs expect increasing requests from their partnering banks and heightened scrutiny from these regulatory bodies in the coming months? Will we see a a growing number of banks terminating their fintech partnerships due to the substantial cost of compliance?