Letter to Bowman emphasizes the need to resolve uncertainty and modernize the Fed’s supervisory approach

Washington, D.C. (April 3, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, sent a letter to Federal Reserve Governor Michelle Bowman in support of her nomination as Vice Chair for Supervision. AFC applauds Governor Bowman's long-standing commitment to transparency and responsible innovation, and outlines key policy priorities for the Federal Reserve as it continues to oversee a rapidly evolving financial services landscape.

“Governor Bowman has earned the trust of both regulators and the responsible fintech industry by consistently approaching her role with transparency, nuance, and a deep understanding of how technology is reshaping financial services,” said Phil Goldfeder, CEO of the American Fintech Council. “Her nomination is a win for pragmatism and progress, and we are confident she will lead supervisory efforts that protect consumers while fostering the responsible innovation necessary to meet the needs of the modern economy.”

AFC highlights that Governor Bowman’s direct experience in banking and her thoughtful engagement with the fintech sector make her uniquely suited for the Vice Chair for Supervision role. The letter urges the Federal Reserve, under her leadership, to continue developing a clear regulatory framework that encourages responsible innovation and provides consistent expectations for financial institutions and their partners.

There are several areas where AFC believes the Federal Reserve can take meaningful steps to modernize its supervisory approach. These include renewed interagency efforts to resolve the ongoing uncertainty around the “true lender” standard, which impacts the viability of bank-fintech partnerships; issuing activity-specific guidance to reflect the realities of modern digital lending, payments, and deposit-taking models; and tailoring supervision based on the actual risk profile of bank-fintech partnerships, rather than applying overly broad standards. AFC also encourages the Federal Reserve to deepen its internal innovation infrastructure, such as the Novel Activities Supervision Program, and explore how supervisory technology (suptech) and updated examiner training can improve the efficiency and effectiveness of oversight.

“Effective supervision should recognize the diversity of financial institutions and the innovative models that are expanding access to credit and banking services,” said Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC. “We are confident that under Governor Bowman’s leadership, the Federal Reserve will build on its recent progress and take bold steps to create a more adaptive, transparent, and responsible regulatory environment.”

AFC urges the Senate to swiftly confirm Governor Bowman and looks forward to continued collaboration with the Federal Reserve to advance sound public policy that supports consumer protection, financial inclusion, and responsible innovation.

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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