Aug 19, 2026 · 21 min · 11 segments
What if regulators could strengthen oversight without writing a new rule? In this episode of RegFi, co-hosts Jerry Buckley and…
Sasha LeonhardtHostJerry BuckleyHostToday we are going to be taking an unusual step of discussing a regulatory agency initiative that hasn't yet been formally released.
In July, Bloomberg Law obtained a draft term sheet for a brand new organization that would set risk standards for fintechs that banks partner with and certify them.
Every bank that partners with a fintech for deposits, payments, lending, whatever, is required to vet that fintech.
So a fintech with 20 bank partners answers the same due diligence questionnaires 20 times, and 20 compliance teams review basically the same documents.
To ease the regulatory burden, what is proposed is an independent industry-run body that writes one baseline standard, and then independent assessors would certify fintechs against the standard once, and banks can rely on, or at least can start from, that certification instead of reinventing the review each time.
The FDIC here is playing convener and, as you noted, potentially seed funder.
But it's been explicit per the reporting we've seen that the FDIC will not endorse any specific standard setter or certification.
It's going to get the machine running and then at least nominally step back, though obviously government agencies don't have a great history of setting things in place and then leaving them to run entirely of their own affairs.
The FDIC is reportedly collaborating with a number of institutions in this and trade groups we're familiar with.
And we've had guests on for many of these, the American Bankers Association, the Independent Community Bankers of America, the Bank Policy Institute, the Financial Technology Association, the American FinTech Council, and the Coalition for Financial Ecosystem Standards.
Today we are going to be taking an unusual step of discussing a regulatory agency initiative that hasn't yet been formally released.
In July, Bloomberg Law obtained a draft term sheet for a brand new organization that would set risk standards for fintechs that banks partner with and certify them.
Every bank that partners with a fintech for deposits, payments, lending, whatever, is required to vet that fintech.
So a fintech with 20 bank partners answers the same due diligence questionnaires 20 times, and 20 compliance teams review basically the same documents.
To ease the regulatory burden, what is proposed is an independent industry-run body that writes one baseline standard, and then independent assessors would certify fintechs against the standard once, and banks can rely on, or at least can start from, that certification instead of reinventing the review each time.
The FDIC here is playing convener and, as you noted, potentially seed funder.
But it's been explicit per the reporting we've seen that the FDIC will not endorse any specific standard setter or certification.
It's going to get the machine running and then at least nominally step back, though obviously government agencies don't have a great history of setting things in place and then leaving them to run entirely of their own affairs.
The FDIC is reportedly collaborating with a number of institutions in this and trade groups we're familiar with.
And we've had guests on for many of these, the American Bankers Association, the Independent Community Bankers of America, the Bank Policy Institute, the Financial Technology Association, the American FinTech Council, and the Coalition for Financial Ecosystem Standards.
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