The American Fintech Council (AFC) has issued a statement in support of the Bank-Fintech Partnership Enhancement Act (HR 6552).
The legislation requires the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation to study how partnerships between Fintechs and banking organizations can support the health of community banks.
Community banks and smaller banks have been in decline for years as consolidation continues, exacerbated by rising costs, expensive compliance, and the need to keep tech stacks up to date.
In a letter to House Financial Services Committee Chairman French Hill and Ranking Member Maxine Waters, AFC urged bipartisan support for legislation sponsored by Representative Andy Barr (R-KY) that would direct federal financial regulators to conduct a comprehensive study on partnerships between fintech companies and banking organizations, including community banks.
Phil Goldfeder, CEO of the American Fintech Council, said the legislation takes a “pragmatic, data-driven approach to policymaking by ensuring Congress and regulators understand how these partnerships function in practice and how oversight can be strengthened without stifling innovation.”
“The Bank-Fintech Partnership Enhancement Act is a meaningful step towards clearer, more consistent oversight of bank-fintech partnerships,” said Hayden Cole, Director of Federal Government Affairs at the American Fintech Council.
