The FDIC technology lab (i.e., "FDiTech") published a guide to help financial technology firms and third parties conduct business with banks.

The Guide describes:

  • how banks determine which third parties to use and how they manage third-party relationship risk;
  • how a third party should prepare for applicable due diligence requirements before providing a service to, or partnering with, a bank; and
  • what materials bank management may request from a third party under the due diligence and contract management process.

The FDIC noted that this is the first in a series. The FDIC also provided a list of additional resources.

Commentary Steven Lofchie

The FDIC Guide serves a number of related purposes: (i) it provides assistance to technology firms by instructing them on how to market to banks and to respond to request for quotes (RFQs); (ii) it summarizes for banks the minimum materials that they should be requesting from technology firms from which they obtain services; and (iii) it makes it easier for banks to negotiate with technology firms by laying out the diligence and contractual requirements that banks should obtain from technology service providers as a matter of law.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.