FDIC unveils rule forcing banks to keep fintech customer data in aftermath of Synapse debacle

Published On Sep 17, 2024, 10:01 AM

The FDIC proposed a new rule requiring banks to maintain detailed records of customers' accounts opened through fintech applications. This decision follows the Synapse failure, which left many customers unable to access their funds. The rule mandates that banks must track account ownership and daily balances, enhancing accountability and improving customer access in case of bank failures or fintech insolvency.

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Investors in banks that partner with fintech firms may see increased compliance costs due to these new regulations, but overall, the stability this brings could improve customer trust. Additionally, banks with robust fintech partnerships may retain or grow their market share. Thus, investors should look for stocks of banks recognized for their fintech collaborations and regulatory adaptability.

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