The American Fintech Council (AFC) has expressed strong support for Michelle Bowman in her nomination as the Federal Reserve Vice Chair for Supervision. In a letter addressed to Governor Bowman, AFC underscored the need for modernizing the Fed’s supervisory approach to address uncertainties and adapt to the evolving financial landscape.
Phil Goldfeder, CEO of the AFC, stated, “Governor Bowman has earned the trust of both regulators and the responsible fintech industry by consistently approaching her role with transparency, nuance, and a deep understanding of how technology is reshaping financial services.” He further described her nomination as beneficial for progress and pragmatism, expressing confidence in her ability to foster innovation while protecting consumers.
AFC acknowledged Bowman's direct experience in banking and her proactive engagement with the fintech sector as ideal for the supervisory role. The organization urged that, under Bowman's leadership, the Federal Reserve should develop a clear regulatory framework to encourage innovation and establish consistent expectations for financial institutions and their partners.
The AFC highlighted areas for the Federal Reserve to modernize its supervisory approach, emphasizing the resolution of uncertainties around the “true lender” standard, which affects bank-fintech partnerships. The letter also called for targeted guidance to address modern digital lending and payment models, and for supervision to reflect the specific risk profiles of partnerships rather than applying broad standards. The AFC advocated for internal innovation, such as the Novel Activities Supervision Program, and exploring supervisory technology advancements to improve oversight.
Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC, remarked, “Effective supervision should recognize the diversity of financial institutions and the innovative models that are expanding access to credit and banking services.” Moloney expressed confidence in the Federal Reserve's ability to enhance regulatory transparency and adaptiveness under Bowman’s guidance.
AFC urged the Senate for Bowman’s swift confirmation and anticipated continued collaboration with the Federal Reserve in developing policies that support consumer protection and financial innovation.
The AFC represents major fintech companies and innovative banks, aiming to promote a transparent and customer-focused financial system. It supports responsible innovation and sound public policy to foster competition and serve underserved consumers.