Community Banks Seek Partnership and Regulatory Guidance to Advance Further, as Suggested by AFC to OCC
The American Fintech Council (AFC), an industry association representing responsible fintech companies and innovative banks, has responded to the Office of the Comptroller of the Currency's (OCC) Request for Information (RFI) on community bank digitisation. In their response, the AFC commends the OCC for its focus on community bank digital transformation and encourages the agency to provide consistent oversight to empower local financial institutions to evolve and compete in a digital economy.
The AFC emphasises the importance of partnerships, particularly between community banks and fintech firms, in enabling the delivery of digital-first services, particularly to underserved communities and small businesses. They advocate for collaboration as a vital component of digital transformation.
The Council urges the OCC to adopt a forward-looking regulatory approach that supports responsible innovation, providing regulatory clarity and flexibility to community banks as they modernise their digital capabilities. This approach is critical to ensure that banks can innovate without being burdened by excessive compliance requirements.
AFC also calls for clear, consistent oversight that balances modernisation efforts with compliance requirements. This oversight is essential to ensure that community banks can innovate safely while maintaining consumer protection and financial stability. The Council believes that this oversight should be balanced and avoid one-size-fits-all approaches.
Ian P. Moloney, SVP and head of policy and regulatory affairs at the AFC, emphasises the importance of the future of community banking depending on access to responsible innovation. PhilGoldfeder, CEO of the American Fintech Council, states that community banks need tools, flexibility, and regulatory clarity to embrace responsible digital modernisation.
The AFC's vision for community banking involves the use of innovative, accessible, and secure financial products. They encourage the OCC to provide guidance that promotes consistent examiner training and transparency, avoiding one-size-fits-all approaches. The AFC looks forward to working with the OCC for regulatory modernisation and examiner education.
The OCC's RFI is about understanding the challenges and barriers faced by community banks in adopting and implementing digital banking solutions. The AFC believes that bank-fintech partnerships play a crucial role in the evolution of local financial institutions in a digital economy. They encourage the OCC to recognise the value of these partnerships as part of its broader mission.
In conclusion, the American Fintech Council's response to the OCC's RFI underscores the need for a forward-thinking regulatory approach that supports responsible innovation, clear and consistent oversight, and the value of partnerships in advancing underserved communities. The AFC's stance is that the future of community banking relies on the OCC's support for responsible innovation.
- The American Fintech Council advocates for digital banking solutions, believing that partnerships between community banks and fintech firms are crucial in delivering digital-first services to underserved communities and small businesses.
- To ensure the future of community banking, the American Fintech Council emphasizes the need for a regulatory approach that supports responsible innovation, provides regulatory clarity and flexibility, and encourages bank-fintech partnerships for a secure and modern digital economy.
