"The Federal Reserve's chief regulator praised industry efforts to expand access to financial services but cautioned that such initiatives can present financial stability risks.

While banks have played a 'pivotal role' in improving financial inclusion, Fed Vice Chair for Supervision Michael Barr said their reliance on financial technology, or fintech, partners to do so creates risks that must be carefully managed.

'Innovations in banking services are important to improving financial inclusion,' Barr said. 'But to have a durable impact on society, innovations must be adopted responsibly.'"