Policy Priorities
Responsible bank-fintech partnerships offering embedded finance keeps banks competitive and empower consumers with financial options
“Wanting a well-tailored regulatory approach that enables community banks to thrive is a critical goal. There is a history of regulators speaking a lot about the importance of community banks, but at the same time continuing to layer more and more regulatory expectations on them that make them increasingly unviable… Both from a policy perspective in D.C. and from an examination perspective on the ground, I think trying to be as clear as possible in terms of what our standards are, what our expectations are, and then supervising based on the expectations that we've communicated – that’s the goal.”
Travis Hill, Acting FDIC Chairman
Remarks at the 2025 American Fintech Council Policy Summit
Whether we call it Embedded Finance or any other moniker, it is part of the evolution and extension of financial services to meet the expectations of today's businesses and consumers; it is a disruptive delivery channel, no different than credit cards is to checks or the ATM is to a branch.
Regulatory clarity and certainty is key. Regulated and responsible financial institutions recognize their role to protect the integrity of the financial system and are poised to lead the future of financial services innovation as they break down traditional barriers to capital and reach families and businesses traditionally left behind. Responsible innovators require regulatory modernization that promotes innovation but also holds innovators accountable to being open and transparent. We are now at a moment where modern and forward-looking regulation will strengthen the banks and fintech companies that play by the rules and act responsibly.
Our collective goal should be ensuring the transparency that underpins the trust in our current banking system evolves to meet our clients' expectations by defining the rules, versus turning away from them.
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