FRB-NY Renews Culture Analyses With Fintech Focus

Although the New York Fed’s corporate-culture efforts were high profile in the wake of the great financial crisis, attention has shifted to matters leading the Reserve Bank to retool its effort.  In remarks today, James Hennessy, head of this work at the New York Fed, announced that focus has turned to how the digital transformation affects corporate culture, looking for example at how new entrants affect bank decision-making.  This appears to be a reference to a new inter-agency worry: that fintech or similar partnerships are driven more by bank profit considerations than attention at the same time to risk management and consumer protection.