AFC highlights importance of risk-based oversight, data protection, and human accountability in financial services AI deployment

Denver, CO (May 5, 2026) – The American Fintech Council (AFC), the largest industry association representing both responsible fintech companies and innovative banks, submitted a letter to Colorado Senate President James Coleman and Majority Leader Robert Rodriguez expressing support for the state’s work to establish a clear and pragmatic governance framework for artificial intelligence in financial services. The letter recognizes the efforts of the Colorado AI Policy Work Group and emphasizes the importance of refining the legislation to ensure it provides durable, workable standards for both consumers and industry.

“A thoughtful, risk-based approach to AI governance is essential to ensuring that financial institutions can continue to responsibly innovate while maintaining strong consumer protections and operational accountability,” said Phil Goldfeder, CEO of the American Fintech Council. “Colorado has taken an important step toward building a framework that recognizes how these technologies function in real-world financial services environments. Policymakers should continue to refine this approach to ensure it provides clarity, flexibility, and durable protections for consumers.”

In its letter, AFC highlights that financial institutions are already deploying advanced data-driven technologies across core functions such as fraud detection, underwriting, compliance, and customer service. When implemented responsibly, these tools enhance operational efficiency, strengthen risk management, and expand access to financial services. AFC underscores that effective governance frameworks should reflect how these technologies are used in practice, rather than applying rigid or overly prescriptive requirements that could limit their benefits.

AFC outlined three core principles for effective AI governance in financial services: data privacy and security, transparency in how AI systems operate, and meaningful human oversight. The letter notes that these principles align with existing risk management and compliance structures already in place across regulated financial institutions, and can be integrated into current supervisory frameworks without adding unnecessary complexity.

“A balanced AI framework should build on the strong risk management, compliance, and consumer protection systems that responsible financial institutions already maintain,” said Ashley Urisman, Director of State Government Affairs at the American Fintech Council. “By emphasizing data protection, transparency, and practical human oversight, Colorado can establish clear, consistent standards that protect consumers while allowing responsible innovation to continue delivering better financial outcomes across the state.”

A standards-based organization, the American Fintech Council (AFC) is the largest and most diverse trade association representing financial technology (fintech) companies and innovative banks. On behalf of over 150 member companies and partners, AFC promotes 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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