In response to recent proposals by the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve, the Bank Policy Institute and Clearing House Association are advocating for direct regulatory oversight of fintechs.

These organizations believe that robust agency oversight, combined with consumer education, is essential for effective risk management in fintech partnerships. They argue that the current regulatory model places too much responsibility on banks alone, treating compliance as a "bank issue" rather than a shared obligation, which could limit the efficacy of risk management in fintech.

Meanwhile, the Independent Community Bankers of America has voiced concerns about the current framework's "significant shortcomings" and has recommended more adaptable regulatory tools, like 'just-in-time' reviews and enhanced scrutiny of emerging technologies. In contrast, the Financial Technology Association's CEO Penny Lee urged regulators to recognize the benefits of bank-fintech partnerships, warning that certain proposed FDIC rules, such as those on brokered and custodial deposit accounts, may have unintended consequences. She emphasized that these measures could limit consumer and small business access to innovative financial solutions.