The Payments industry is constantly changing and presenting new opportunities. ICBA continues to support a regulatory environment that does not impede community bank access to payment systems through the imposition of anti-competitive pricing, policies, or technological barriers. ICBA opposes any legislative or regulatory changes that adversely impact the competitive nature of our nation’s payments system.

A secure and well-regulated payments system is essential to all financial institutions and the customers and communities they serve. Traditional U.S. payments systems have restricted direct access exclusively to federally insured financial institutions. New technology has enabled the rapid proliferation of non-bank financial technology (“fintech”) companies that are providing a full suite of banking services but sit outside the regulatory perimeter.

These differences create an unfair advantage for fintechs, while adding risk to the financial system as these providers are not subject to the same safety and soundness, regulatory oversight, and supervisory requirements as banks. These entities should not be provided a competitive advantage through policy preferences. Maintaining a level playing field ensures equitable access, provides options for community banks, and fosters systemic resiliency for the settlement of payments.