The guide acknowledges the growing number of community banks using third-party fintechs to supplement and enhance their services, and says the pairings can lead to increased efficiency and reduced costs, “all bolstering competitiveness.”
The partnerships, however — which many community banks have adopted to offer products that compete with larger national lenders — are not without their risks, the guide said.
“Assessing the benefits and risks posed by these relationships is key to a community bank’s due diligence process,” the agencies noted in the guide.