FDIC aims to establish standards body to certify banking services providers - Bloomberg Law

The FDIC is moving to simplify how banks work with fintech partners by creating an independent standards committee. For retailers and operators, this is a significant development in the consumer financing landscape. Currently, when a bank partners with a financing provider or BNPL platform, they face a mountain of complex due diligence. This new body aims to create a 'gold standard' certification for these service providers, making it easier for banks to green-light new lending products and partnerships. If you use a third-party financing platform, this change could lead to more stable and diverse lending options. The goal is to reduce the risk of sudden service disruptions caused by regulatory crackdowns. When your financing partner is 'certified,' the bank backing the money feels more secure. For your business, this translates to faster onboarding of new payment technologies and potentially lower costs as banks spend less on individual audits. It essentially creates a 'vetted' list of technology partners, ensuring the tools you use to offer credit to customers are compliant and built to last. While the committee is still being formed, it signals a shift toward a more structured and reliable fintech environment for merchants.

Source: Finextra — Lending

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