The American Fintech Council (AFC) has expressed its support for the Advancing the Mentor-Protégé Program for Small Financial Institutions Act, known as H.R. 3709. The bill, sponsored by Representative Joyce Beatty of Ohio, seeks to create a mentorship program within the Treasury Department aimed at assisting small financial institutions and community banks by pairing them with larger banks. This initiative aims to provide smaller institutions with increased access to expertise, training, and technical assistance.
Phil Goldfeder, CEO of the AFC, remarked on the potential impact of this legislation: “This bill reflects an innovative, smart, and scalable strategy for ensuring small financial institutions can access the resources and expertise they need to grow, comply, and compete.” He emphasized that structured collaboration between larger institutions and local banks would support a more inclusive and resilient financial system.
The AFC's letter praised the mentorship model as a practical approach to addressing gaps in technology, compliance, and operational resilience that affect institutions serving low- and moderate-income communities. A recent report from the U.S. Government Accountability Office highlighted technology barriers faced by community banks and minority depository institutions in areas such as loan underwriting and operations. The GAO recommended enhanced training from the Treasury—a recommendation that this bill aims to fulfill.
Ian P. Moloney, AFC’s Senior Vice President and Head of Policy and Regulatory Affairs, stated: “Small depository institutions are on the front lines of inclusive finance but face distinct challenges operating in an increasingly complex technological and regulatory landscape.” He noted that the mentor-protégé model supports their sustainability while maintaining their independence.
The AFC is a trade association representing leading fintech companies and innovative banks offering embedded finance solutions. Its mission is to promote transparency, inclusivity, and customer-centricity in financial services through responsible innovation.