Responsible bank-fintech partnerships help state-chartered banks remain vibrant, competitive and independent; create important access to credit for families long forgotten by large financial institutions ‍

American Fintech Council (AFC) CEO and former New York State Legislator, Phil Goldfeder travelled to Minnesota state house in St. Paul to advocate for responsible consumer financial access, particularly in minority and rural communities‍

St. Paul, Minnesota (February 27, 2024) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, delivered testimony before the Minnesota House Committee on Commerce Finance and Policy, opposing legislation recently introduced that would devastate Minnesota families. Phil Goldfeder, AFC CEO and former member of the New York State Assembly, appeared in St. Paul to urge legislators to oppose legislation that would put state-chartered community banks at a disadvantage, remove financial options for Minnesota families and potentially devastate the local economy.

“This legislation will harm Minnesota community banks and cut off access to safe, responsible and affordable credit for hundreds of thousands of Minnesota families,” said Phil Goldfeder, Chief Executive Officer of AFC. “As a former state representative, I understand how pragmatic legislation, when drafted and implemented correctly can change the lives of the families we represent but I’ve also seen the unintended consequences. Not all fintech is created equal. AFC’s diverse members represent a cross section of responsible Fintech companies that embrace transparency and are rooted in regulatory compliance and consumer protection.”

AFC testified before the Minnesota House Committee on Commerce Finance and Policy in strong opposition to HF 3680, legislation that would opt Minnesota out of a federal law that provides state-chartered community banks the same opportunities and rights as nationally chartered banks. Although the legality of such legislation is still in question, passage would create uncertainty for responsible community banks providing financial access to Minnesota families.

“AFC agrees with the bill’s intent of creating proper guardrails to ensure Minnesota consumers are protected from high-interest lenders operating outside the state’s regulatory perimeter,” said Goldfeder in his remarks before the committee. “However, this bill is a blunt legislative solution for an issue that requires nuance.”

AFC members are at the forefront of fostering competition in consumer finance and pioneering ways to better serve underserved consumer segments and geographies. AFC has publicly supported 36 percent rate caps at state and federal levels, which is a key component of our advocacy and of addressing responsible lending. Our members are also lowering the cost of financial transactions, allowing them to help meet demand for high-quality, affordable products.

“If passed, HF 3680 will decrease access to responsible credit, put community banks at a disadvantage and leave many Minnesota consumers — particularly those in minority and rural communities — with no option but to rely on far too many predatory and high-interest alternatives.” said Goldfeder.

Submitted Testimony on House File 3680 (HF 3680) can be found here.