Press Releases

Today, the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, led by Subcommittee Chairman Bryan Steil (WI-01), is holding a hearing on bank-FinTech partnerships, examining how collaboration between banks and financial technology firms can drive innovation, expand consumer access, and keep the United States at the forefront of global financial innovation.

Read Subcommittee Chairman Steil’s opening remarks as prepared for delivery:

"When we think of innovators, we often picture scientists and engineers toiling away alone in their labs, or entrepreneurs building companies from a garage or dorm room.

"And while we continue to celebrate the achievements of individual innovators, some of the most important innovations in America are happening through collaboration.

"The financial services sector is a prime example.

"In fact, across the country, we see how collaboration in this sector has supercharged innovation, increased consumer choice, and broadened access to financial services.

"In our current financial system, innovation is increasingly driven by partnerships between banks and FinTechs working together to bring novel financial products and services to market and expand choice for all Americans. 

"By combining the speed and technological expertise of software developers with the consumer protections, compliance, and trust of regulated banks, these partnerships are helping cement the United States as the global leader in financial innovation.

"Bank-FinTech partnerships are a win-win.

"FinTech firms gain a partner that can help them scale their business in a compliant way, while banks gain access to new technologies, consumer bases, and growth opportunities, and consumers reap the benefits.

"It is no surprise that we see community and regional banks leading the way in partnering with FinTechs.

"As FinTechs innovate, they can give consumers and businesses of all sizes access to more efficient financial services.

"With adherence to prudent risk management and strong oversight, these relationships can better serve communities.

"This includes facilitating expanded opportunities and inclusion in the form of access to financial services to those who may be less likely to access financial services through traditional bank products.

"As we examine the benefits these partnerships bring consumers, we must remain cognizant of managing risk and ensuring strong due diligence, consumer protection, and compliance safeguards.

"At the same time, federal regulators and examiners should not stifle innovation simply because a product or technology is new or unfamiliar.

"I look forward to exploring recent developments in this space, and hearing from our expert witnesses on what we can do to foster innovation through bank-FinTech partnerships."

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