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At the Federal Reserve's inaugural Payments Innovation Conference on October 21, 2025, Governor Christopher Waller outlined a forward-looking approach to disruption in payments, proposing a "skinny" master account for non-bank innovators. This limited access to Fed rails would bypass full banking oversight, easing dependencies on sponsor banks for services like instant transfers and FedNow. For neobanks, payments providers, and marketplace lenders, this opens doors to lower c

On October 7, 2025, the OCC and FDIC issued a joint notice of proposed rulemaking to define "unsafe or unsound" practices, narrowing focus to material financial risks while excluding non-core issues like reputation risk unless linked to safety and soundness. This follows their withdrawal of broader climate risk guidance and aims to clarify supervision under Executive Order 14331, promoting fair banking access. For sponsor banks and fintech partners in neobanks, payments, and

On October 9, 2025, FinCEN released four new frequently asked questions on suspicious activity reporting, clarifying obligations under the Bank Secrecy Act for financial institutions, including fintechs in payments and lending. These FAQs deviate from past guidance by correcting misinterpretations of earlier suggestions as mandatory requirements, emphasizing flexibility in risk-based approaches to reduce unnecessary burdens. Key deviations include: For potential structuring (