The FDIC has implemented a program to directly monitor fintech companies that collaborate with banks in the US. This move is in response to recent challenges faced by fintech firms, such as the collapse of Synapse.

The goal of the monitoring system is to improve the FDIC's ability to identify and address potential vulnerabilities in these partnerships before they become significant issues for banks. This proactive approach aims to strengthen the stability of the financial system by ensuring that fintech operations comply with regulatory standards and do not pose excessive risks to traditional banks.

Sources familiar with the FDIC's supervisory operations indicate that this initiative reflects a growing recognition of the importance of oversight in the rapidly changing fintech landscape. By closely monitoring these companies, the FDIC aims to protect consumers and maintain the integrity of the banking sector.