Financial institutions are increasingly ramping up partnerships with third-party organizations that offer technologies that promulgate efficiencies or add new banking products to drive revenues.
As these partnerships increase, the risk to the banking system is also increasing. In June, the Federal Deposit Insurance Corp., the Board of Governors of the Federal Reserve and the Office of the Comptroller of the Currency released finalized interagency guidance over third-party risk management practices that financial institutions must consider when entering into business arrangements with third parties.
