US lawmakers revisit bank–fintech partnerships A new U.S. bill is taking a closer look at how partnerships between banks and FinTech companies are formed and regulated. Such collaborations have become a key way for small banks and credit unions to modernize services without overhauling core systems. Policymakers are now examining how these relationships affect stability, innovation, and responsible growth. In recent years, partnerships have shifted from optional strategy to essential infrastructure. FinTech firms are increasingly focusing on credit unions and community banks rather than large national institutions. These collaborations support services like real-time payments, digital identity, rewards programs, and AI-driven customer support. For smaller institutions, partnering with FinTechs is often a necessity rather than an experiment. These alliances help banks remain competitive while navigating limited resources and growing customer expectations. At the same time, regulatory complexity remains a major challenge, pushing both sides toward compliance-ready partnership models. The proposed Bank–FinTech Partnership Enhancement Act would require U.S. regulators to jointly study the impact of such partnerships. Lawmakers want to understand whether they improve innovation, reduce compliance friction, and support new bank formation. The bill focuses on alignment and outcomes rather than imposing new regulatory mandates.