Treasury Department would create program to expand access to resources, training, and technical assistance for small financial institutions by pairing them with larger banks

Washington, D.C. (June 11, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, sent a letter yesterday in support of H.R. 3709, the Advancing the Mentor-Protégé Program for Small Financial Institutions Act. The bill, sponsored by Rep. Joyce Beatty (D-OH), received bipartisan support and would address the challenges facing small financial institutions and community banks by creating a mentor-protégé program within the Treasury Department. This initiative would pair smaller institutions’ with larger banks, increasing their access to expertise, training, and technical assistance and helping them better serve their communities and qualify as Financial Agents to the Treasury. Following AFC engagement, the House Financial Services Committee voted to report H.R. 3709 favorably on Tuesday.

“This bill reflects an innovative, smart, and scalable strategy for ensuring small financial institutions can access the resources and expertise they need to grow, comply, and compete,” said Phil Goldfeder, CEO of the American Fintech Council. “By fostering structured collaboration between larger institutions and local banks, Congress is supporting a more inclusive and resilient financial system – especially for the communities that rely most on these local institutions.”

In its letter, AFC praises the mentorship model as a pragmatic step to address long-standing gaps in technology, compliance, and operational resilience, which particularly affect institutions serving low- and moderate-income communities. In a recent report, the U.S. Government Accountability Office (GAO) found that community banks and minority depository institutions cite a lack of technology as a key barrier to loan underwriting, operations, and community outreach. The GAO recommended enhanced training and capacity-building from the Treasury – a recommendation AFC believes this bill directly addresses.

“Small depository institutions are on the front lines of inclusive finance but face distinct challenges operating in an increasingly complex technological and regulatory landscape,” said Ian P. Moloney, AFC’s Senior Vice President and Head of Policy and Regulatory Affairs. “The mentor-protégé model supports their sustainability while protecting their independence, ultimately strengthening the broader financial ecosystem.”

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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