Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Fed Weighs Handing Fintechs More Access to Its Payments System

May 5, 2021, 7:22 PM

The Federal Reserve is deciding whether to give financial-technology companies more direct access to its payment system after many of the upstarts swelled in popularity during the pandemic.

The central bank invited the public to comment on proposed guidelines that would allow companies with “novel types of banking charters” to access accounts and services provided by the Fed, according to a statement Wednesday.

Financial startups have historically had to rely on relationships with traditional banks that have accounts with regional Fed banks to use the central bank’s payment system. Even those that are granted a new fintech license from the ...