Fostering bank and fintech partnerships that deliver digital first services to underserved communities and small businesses is an absolute must according to the American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, as it responds to the Office of the Comptroller of the Currency’s (OCC) request for information (RFI) on community bank digitisation.
In early May, the OCC issued an RFI on the key challenges and barriers faced by community banks in the adoption and implementation of digital banking solutions. The RFI would help the OCC better understand the specific obstacles that community banks encounter in their efforts to modernise operations, enhance customer experience, and remain competitive in an increasingly digital financial services environment.
Responding to the OCC, the AFC‘s letter has urged a forward-thinking regulatory approach that supports responsible innovation and enables community banks to compete in an evolving financial ecosystem. In addition to a focus on partnerships and their role in advancing underserved communities, the AFC also highlights that without consistent and clear oversight, community banks could be plagued by disproportionate compliance burdens.
Furthermore, the letter encourages OCC to provide guidance that promotes consistent examiner training and transparency while avoiding one-size-fits-all approaches that could inadvertently stifle innovation at smaller institutions.
AFC commends OCC for its focus on community bank digital transformation and encourages the agency to recognise the value of technology partnerships as part of its broader mission to ensure fair access, consumer protection, and financial stability.
Facilitating innovation responsibily
“As we navigate a rapidly changing financial services landscape, community banks must have the tools, flexibility, and regulatory clarity to embrace responsible digital modernisation,” said Phil Goldfeder, CEO of the American Fintech Council. “OCC’s continued engagement on this issue is a meaningful step forward.
“We look forward to working with the agency to ensure regulatory modernisation and examiner education so that smaller institutions can continue serving their communities through innovative, accessible, and secure financial products.”
“The future of community banking depends on access to responsible innovation,” said Ian P. Moloney, SVP and head of policy and regulatory affairs at AFC. “By supporting well-structured bank-fintech partnerships and providing consistent oversight, OCC can ensure that local financial institutions are empowered to evolve and compete in a digital economy.”
