Calls for increased efforts to make community banking great again by pursuing clear, consistent oversight and enhanced support for responsible bank-fintech partnerships

Washington, D.C. (April 2, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, today submitted a comprehensive comment letter in response to the House Financial Services Committee’s request for feedback on its “Make Community Banking Great Again” principles. In the letter, AFC outlines key activities that the Committee could conduct to support the continued development of responsible bank-fintech partnerships and enhance the long-term viability of community banking across the country.

“Responsible innovation within community banks is critical to the resilience of the U.S. financial system. When paired with responsible fintech partners, they can expand access to safe, innovative financial tools for consumers nationwide,” said Hayden Cole, Director of Federal Government Affairs at the American Fintech Council. “We commend Chairman French Hill for his leadership in exploring a legislative framework to modernize oversight and create an environment where both responsible innovation and consumer protection can thrive.”

AFC’s letter highlights the important role that bank-fintech partnerships play in improving access to financial services—particularly for underserved communities. AFC underscores how partnerships between regulated financial institutions and responsible fintech companies have fueled the development of transparent, technology-driven products such as responsible fintech loans, high-yield deposit accounts, credit builder tools, earned wage access (EWA), and buy-now-pay-later (BNPL) offerings.

The letter also details opportunities for the Committee to help modernize the supervisory framework governing these partnerships, specifically by improving examiner education, providing additional activity-specific guidance, and developing programs that reward proactive compliance efforts by regulated entities. AFC also encourages continued investment in emerging technologies such as supervisory technology (suptech) to strengthen oversight and reduce regulatory burdens.

“The future of community banking depends on creating a regulatory environment that encourages responsible innovation and supports local institutions as they evolve to meet consumer demand,” said Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC. “We look forward to working with Congress to ensure regulatory policy is pragmatic, consistent, and designed to keep pace with modern financial services.”

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.

‍