OCC's Hsu Says Bank-Fintech Relationships May Be Systemic Risk

Source: American Banker

Acting Comptroller of the Currency Michael Hsu warned that widespread and increasingly complex relationships between banks and fintechs could set the stage for a financial crisis. 

At a conference of bankers in New York hosted by the Bank Policy Institute and the Clearing House Association, Hsu said that he's concerned with the increase in complexity in business models that facilitate things like mobile payments, online lending and deposit-taking activities. 

"The 'de-integration' of banking services that is taking place now has its roots in technology, data, operations," Hsu said. "It is affecting all banks, not just the large money-center banks. My strong sense is that this process, left to its own devices, is likely to accelerate and expand until there is a severe problem, or even a crisis."