The Federal Reserve plans to publish a white paper early next year on community bank partnerships with fintech companies and effective practices for managing those arrangements, Fed Governor Michelle "Miki" Bowman told ICBA community bankers.
Speaking at the first-ever ICBA ThinkTECH Policy Summit, Bowman said these partnerships can promote a "diversity of choice and accessibility" for customers, improve efficiency and regulatory compliance, and more.
Bowman—the first person to fill the Fed’s ICBA-advocated community banking seat—also said the agency will launch a pilot program next month to help roll out the FedNow instant payments service as soon as possible. ICBA has urged the Fed to collaborate with community banks to swiftly implement FedNow.
Also at the final day of the ThinkTECH summit, House Financial Services Committee Artificial Intelligence Task Force Chairman Bill Foster (D-Ill.) said Congress is charged with staying ahead of fintechs seeking bank-like powers without regulatory oversight, a long-time ICBA priority.