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Financial Institution Letter

FDIC Seeks Input on Potential Voluntary Certification Program to Promote New Technologies

July 20, 2020  |  FIL-71-2020

Summary:

The FDIC announced that it is seeking the public's input on the potential for a public/private standard-setting partnership and voluntary certification program to promote the efficient and effective adoption of innovative technologies at FDIC-supervised financial institutions. The FDIC today published a Request for Information as part of its FDiTech Initiative to promote the adoption of innovative technologies across the financial services sector.

A copy of the Request for Information can be found on the FDIC’s website.

Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter (FIL) applies to all FDIC-supervised financial institutions.

Highlights:

  • The Request for Information asks whether the proposed system might help reduce the regulatory and operational uncertainty that may prevent financial institutions from deploying new technology or entering partnerships with technology firms, including “fintechs.”
  • For financial institutions that choose to use the system, a voluntary certification program could help standardize due diligence practices and reduce associated costs.
  • Given rapid technological developments and evolving consumer behaviors in banking, this public/private partnership model has the potential to help promote innovation across the banking sector and streamline what can be a costly and duplicative system for both banks and technology firms.
  • The FDIC encourages comments from all interested parties by 60 days from publication in the Federal Register.

Distribution:

FDIC-Supervised Institutions

Suggested Routing:

Chief Executive Officer
Compliance Officer
Chief Information Officer

Related Topics:

The FDiTech Initiative