SR 21-15 / CA 21-11: Guide for Community Banking Organizations Conducting Due Diligence on Financial Technology Companies

Issued on August 27, 2021, “SR 21-15 / CA 21-11: Guide for Community Banking Organizations Conducting Due Diligence on Financial Technology Companies” is a resource developed by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency. This guide is intended for banking organizations with $10 billion or less in consolidated assets supervised by the Federal Reserve.

“Understanding a fintech company’s qualifications and strategic direction will help a community bank assess the fintech company’s ability to meet the community bank’s expectations and support a community bank’s objectives.”

“A community bank may evaluate a fintech company’s ability to continue operations through a disruption. Depending on the activity, a community bank may look to the fintech company’s processes to identify, respond to, and protect itself and customers from threats and potential failures, as well as recover and learn from disruptive events.”

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