“TheAmerican Fintech Council (AFC) applauds the prudential regulators' continuedefforts to modernize supervision and advance a regulatory framework thatsupports responsible innovation while maintaining the safety and soundness ofthe banking system.

“AFCis particularly encouraged by FDIC Chairman Travis Hill's recognition thatpartnerships between banks and financial technology companies have beeninstrumental in helping community banks adopt innovative technologies to betterserve consumers. We support the agencies' efforts to revise third-party riskmanagement guidance through a principles-based approach that aligns regulatoryexpectations with the nature and complexity of individual relationships. Thisapproach is consistent with Executive Order 14405 and reflects a growingrecognition that effective supervision should address genuine risks withoutcreating unnecessary procedural burdens.

“Fortoo long, overly prescriptive supervisory approaches have imposed compliancecosts that do little to strengthen consumer protections or improve safety andsoundness. Modern regulatory frameworks should provide clear pathways forresponsible innovation while ensuring appropriate oversight and accountability.Done correctly, this approach can help banks and fintech companies continuedelivering safe, affordable, and accessible financial products and services toconsumers.

“AFC looks forward to continuing to work with regulators and policymakers to advancepolicies that encourage responsible innovation, strengthen the banking system,and expand access to financial services for consumers and businessesnationwide.”

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