The American Fintech Council (AFC) submitted a detailed comment letter to the House Financial Services Committee, addressing the "Make Community Banking Great Again" principles. This initiative emphasizes enhancing support for responsible bank-fintech collaborations to strengthen community banking.
"Responsible innovation within community banks is critical to the resilience of the U.S. financial system," commented Hayden Cole, Director of Federal Government Affairs at AFC. The AFC praised Chairman French Hill for his leadership in seeking modern regulatory frameworks that encourage innovation and consumer protection.
The AFC highlighted the role of bank-fintech partnerships in broadening access to financial services. This includes fintech lending, high-yield deposit products, credit-building tools, earned wage access, and buy-now-pay-later services. The AFC letter identifies opportunities to modernize the supervisory framework through improved examiner education, specific guidance, and rewarding proactive compliance.
"The future of community banking depends on creating a regulatory environment that encourages responsible innovation and supports local institutions," said Ian P. Moloney, Senior Vice President and Head of Policy and Regulatory Affairs at AFC.
The AFC aims to promote a transparent, inclusive, and customer-centric financial system by advocating for responsible innovation and practical regulatory policies. The council represents leading financial technology companies and banks offering embedded finance solutions and focuses on enhancing competition and service in underserved markets.
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