More and more community bankers are working on how to adjust their businesses to make the best use of new technologies, Federal Reserve Governor Michelle “Miki” Bowman said.

Speaking at the San Francisco Fed, Bowman said community banks’ relationship-based business model helps insulate them from fintech competitors, allowing these entities to partner and better compete against larger banks.

Bowman said banking regulators and examiners should consider whether their requirements deter some community banks from innovating and adopting new technologies. As an example, she said risk-management guidance on outsourcing should reflect the present realities of supervised banks.

Bowman—the first person to fill the Fed’s ICBA-advocated community banking seat—was recently renominated for a full 14-year term by President Donald Trump. Her remarks on fintech collaboration follow the recent conclusion of the ICBA ThinkTECH Accelerator, a first-of-its-kind program to exclusively cultivate community bank-focused technologies.