In their semi annual report published this week, the OCC singled out financial innovation and rapid developments in fintech as a special topic in emerging risks to the banking industry; at the same time the OCC cautioned against banks that take a wait-and-see approach to new technology warning it can result in a loss of market share; the risks are highest where banks pursue innovation without strong corporate governance and effective risk management; they recommend banks identify fintech opportunities that can increase their efficiency and ability to retain customers but they must conduct proper due diligence and implement appropriate controls with these third party relationships. Source.