Integrating Financial Technology Innovation Into Regulatory Frameworks
Streamlines Regulations to Integrate Fintech Firms with Banks
What it does
Federal financial regulators must review and update rules to reduce barriers and encourage fintech integration with banks and payment systems.
Real-world impact
- Could make it easier for fintech firms to partner with banks and credit unions.
- May open potential access to Federal Reserve payment accounts for non-bank firms.
- Streamlines applications for bank charters, deposit insurance, and other authorizations.
Topics
Summary
This order directs the federal government to update rules so non-bank fintech companies can more easily provide digital financial services and partner with traditional banks and credit unions.
Federal financial regulators must review and streamline regulations, guidance, and application processes to lower barriers for small and emerging fintech firms and to balance innovation with consumer protection and financial stability.
The Federal Reserve is asked to evaluate whether certain non-bank firms can access Reserve Bank payment accounts and to report findings and options to the President.
Questions, answered
Ask questions about this executive order and its implications. Try:
- “What agencies are affected by this order?”
- “How does this order change existing policy?”
- “What are the practical implications of this order?”