Building on earlier advocacy, AFC calls for expanding business-purpose disclosures across prospective bank partnerships and corporate transactions, streamlining compliance safeguards, and establishing a framework for aggregated industry analysis

Washington, DC (October 6, 2026) – The American Fintech Council (AFC), the largest industry association representing both responsible fintech companies and innovative banks, submitted comment letters in response to Notices of Proposed Rulemaking from the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) regarding the disclosure of confidential supervisory information (CSI). AFC commends both agencies for seeking to replace outdated frameworks with more refined structures that permit supervised entities to share CSI under defined circumstances while working to preserve essential supervisory confidentiality.

“An effort long championed by AFC, we commend the FDIC and OCC for this effort to modernize the CSI framework and build a durable and transparent financial ecosystem that encourages responsible innovation,” said Phil Goldfeder, CEO of the American Fintech Council. “As financial technology continues to evolve, banks and fintech companies must be able to conduct rigorous, responsible due diligence before establishing formal partnerships. A modern regulatory framework should allow institutions to exchange critical supervisory context at the earliest stages of collaboration. Backed by rigorous industry compliance safeguards, this reform will unlock new opportunities for collaboration and innovation to better serve consumers.”

Building on its January letter to the OCC, FDIC, and Federal Reserve, AFC urges both OCC and FDIC to extend business-purpose disclosure authority across the full life cycle of third-party relationships, arguing that institutions must be permitted to share relevant CSI with prospective service providers during initial due diligence before entering into a contractual relationship. In its OCC letter, AFC highlights the need to share CSI during corporate transactions, merger and acquisition evaluations, and pre-engagement diligence for senior leadership candidates. AFC notes in its FDIC letter that permitting FDIC-examined service providers to disclose CSI concerning their own operations to prospective banks is critical to making informed decisions around risk.

AFC also emphasizes the need to implement confidentiality and recordkeeping safeguards that protect sensitive supervisory data without recreating prior-approval burdens. AFC recommends allowing confidentiality provisions to be integrated into existing agreements, relying on ordinary-course-of-business recordkeeping and avoiding rigid domestic incorporation requirements, personnel access logs, or transaction-by-transaction disclosures.

“Modern banking relationships increasingly depend upon the ability of regulated institutions to exchange information with affiliates, fintech partners, advisers, and specialized service providers before formal relationships are established,” said Ian P. Moloney, Chief Policy Officer at the American Fintech Council. “For years, innovative banks being examined by regulators have had to play a game of telephone with their fintech partners and other relevant parties due to the existing CSI framework. AFC has been advocating for the prudential regulators to remedy this issue and we are encouraged by the proposed rulemakings. Modernizing this framework will improve efficiency and efficacy in the examination process for all parties involved, resulting in a better examination experience and outcome.”

AFC additionally advocates for a clear and lasting framework that permits qualifying entities, including trade associations and research organizations, to receive institution-specific CSI only to conduct aggregated analysis. Enabling responsible entities to analyze supervisory patterns and publish aggregated findings will help inform regulatory advocacy and continue policy research without compromising confidentiality.

A standards-based organization, the American Fintech Council (AFC) is the largest and most diverse trade association representing financial technology (fintech) companies and innovative banks. On behalf of nearly 175 member companies and partners, AFC promotes 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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