“The American Fintech Council commends the Subcommittee’s continued leadership in examining the role bank-fintech partnerships play in strengthening the U.S. financial system. As outlined in our statement for the record, these partnerships have become a central feature of modern financial services, expanding access to credit, improving competition, and delivering digital-first products to tens of millions of consumers and small businesses across the country.

“To build on this progress, Congress should continue advancing policies that provide clear, consistent direction for responsible innovation. AFC supports many of the Committee’s efforts to modernize regulatory and supervisory frameworks, including legislation such as the Bank-Fintech Partnership Enhancement Act, which will help further understanding of these partnerships and their role in supporting community banks and financial inclusion. A coordinated, activity-based federal supervisory approach can reduce unnecessary fragmentation while maintaining strong consumer protections and safety and soundness standards.

“As policymakers advance these efforts, it will be important to ensure that supervision keeps pace with the continued growth of bank-fintech partnerships. Greater coordination among regulators, continued investment in examiner expertise, and the adoption of modern tools can improve oversight while reducing inefficiencies for both agencies and regulated entities. AFC looks forward to continuing its work with Congress to advance a risk-based, forward-looking framework that strengthens the financial system and expands access to safe, affordable financial services.”

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