The American Fintech Council (AFC) has voiced its opposition to legislative proposals in Rhode Island and Washington, D.C., arguing that the measures could negatively impact state-chartered community banks and limit financial options for local families. The AFC, which represents fintech companies and innovative banks, presented its concerns to the Rhode Island Senate Committee on Commerce and Policy and the D.C. Council Business and Economic Development Committee.
Phil Goldfeder, CEO of AFC, expressed concerns about the potential consequences of these bills. "Under the guise of consumer protection, these bills in Rhode Island and D.C. will harm consumers who need access to safe and affordable financial services and will put local state-chartered banks at a disadvantage," said Goldfeder.
AFC's testimony highlighted that the proposed legislation seeks to opt states out of a federal law granting state-chartered community banks similar opportunities as nationally chartered banks. Goldfeder warned that this could lead to uncertainty for community banks providing essential financial services in Rhode Island and D.C.
Goldfeder emphasized during his remarks in Providence that "SB 2275 will decrease access to responsible credit...put community banks at a disadvantage and leave many Rhode Islanders—particularly those in minority communities—with no option but to rely on far too many predatory and high-interest alternatives."
Ian P. Moloney, Senior Vice President of AFC, also shared his apprehensions with the D.C. Council, stating: "Both as a representative of the fintech industry and a resident of DC, I am deeply concerned about the impact that passing this bill will have on my fellow DC citizens."
The AFC's advocacy extends beyond these two regions. Elizabeth Gorz from AFC recently visited Albany following discussions about fintech's positive influence on New York’s banking system. Ezra Garrett from Oportun remarked on their collaboration with AFC: “We are proud to join AFC to discuss the importance of responsible innovation.”
AFC continues to support rate caps at both state and federal levels as part of its efforts toward responsible lending practices.
Testimonies related to these legislative proposals can be accessed through provided links.