FDIC Looks to Direct Monitoring of Fintech Companies After Synapse Collapse.

The Federal Deposit Insurance Corp. (FDIC) has implemented a system to directly monitor financial-technology companies partnering with banks in the US to anticipate potential vulnerabilities. This monitoring system aims to provide consistent oversight of fintechs, even if they switch banking partners, complementing existing bank oversight mechanisms. The increased scrutiny follows the collapse of Synapse Financial Technologies Inc., leading to regulatory actions and leaving individuals without access to their funds. FDIC Chairman Martin Gruenberg plans to step down in January 2025. [Extracted from the article]