Legislation strengthens community banks, fintech partnerships, and consumer access to safe and affordable financial services

Washington, D.C. (September 25, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, applauded the House Financial Services Committee’s overwhelming 48-2 vote to advance H.R. 5317, the Community Bank Deposit Act of 2025, and commended Chairman French Hill for his leadership on this critical issue. The Act ensures that custodial deposits facilitated through bank-fintech partnerships are recognized as distinct from brokered deposits, bolstering responsible innovation and competition in financial services.

“Community banks and responsible fintech partners work to help families access safe, affordable products every single day,” said Phil Goldfeder, Chief Executive Officer of AFC. “This legislation, and its strong bipartisan support, provides further clarity that gives banks the assurance necessary to continue responsible innovation, provides consumers confidence in their financial decisions, and ultimately strengthens the financial ecosystem by ensuring partnerships can thrive.”

The Act ensures that deposits facilitated through bank-fintech partnerships are recognized for what they are: safe, transparent, and consumer-driven. By drawing a clear line differentiating custodial and brokered deposits, the legislation creates a distinction critical to preserving community bank partnerships that expand access to affordable financial tools. Prior to the committee’s consideration, AFC submitted a letter of support for the bill, underscoring the importance of providing regulatory clarity to strengthen responsible community bank-fintech partnerships. AFC urges swift passage of the Act and stands ready to work with Congress, regulators, and stakeholders to ensure a financial system that advances responsible innovation, consumer empowerment, and inclusion.

“Regulatory clarity allows community banks to better serve their customers and compete on a level playing field,” said Hayden Cole, Director of Federal Government Affairs at AFC. “By affirming that custodial deposits are stable, transparent, and functionally equivalent to core deposits, Congress is enacting a pragmatic reform that upholds safety and preserves the responsible innovation that consumers seek in their financial services.”

A standards-based organization, AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks offering embedded finance solutions. AFC’s mission is to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies.

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