FDIC looks to direct monitoring of fintech firms after Synapse collapse, Bloomberg News reports

FILE PHOTO: A view of the Federal Deposit Insurance Corporation building in Arlington, Virginia, October 25, 2010. REUTERS/Jim Young/File Photo

(Reuters) - The Federal Deposit Insurance Corporation has started to directly monitor financial-technology companies that partner with banks across the U.S., Bloomberg News reported on Wednesday.

The fintech monitoring system will help FDIC examiners anticipate potential vulnerabilities before they become a problem for banks, the report added, citing people familiar with the regulator's supervisory operations.

(Reporting by Disha Mishra in Bengaluru; Editing by Rashmi Aich)