AK: Testimony in Support of AK 39

TO: Alaska Senate Labor & Commerce Committee
FROM: Ashley Urisman, Director, State Government Affairs, American Fintech Council (AFC)
DATE: February 19, 2025
SUBJECT: Senate Bill 39

Position: Support.

Testimony:

Thank you, Chair Bjorkman, Vice-Chair Merrick, and members of the Senate Labor & Commerce Committee for inviting me to testify today in support of Senate Bill 39 (SB 39). My name is Ashley Urisman, and I am the Director of State Government Affairs for the American Fintech Council (AFC).

AFC is a standards-based organization and the premier trade association representing the largest financial technology (Fintech) companies and innovative banks. Our 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.

AFC represents responsible fintech companies of all sizes. We recognize that not all bank-fintech partnerships are created equal, but that certain guardrails are critical to protect consumers. Our association’s position is that interest rates for consumer loans should not exceed 36%. This rate is nationally recognized as one that protects consumers and fosters healthy competition among lenders.

As such, we applaud the Alaska State Senate for proposing this bill capping monthly interest for loans under $25,000 at 36%. This rate gives consumers who need access to affordable credit the ability to take out the loans without being burdened with debt.

Responsible fintech companies partnering with regulated financial institutions have created safe, transparent, and affordable credit options for families long forgotten by traditional financial institutions. Our members have committed to advocating for a regulatory gold standard that offers access to credit without compromising consumer protection or regulatory compliance.

I thank you again for the opportunity to offer my support for this bill and am happy to answer any questions you may have.

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