FDIC Seeking Feedback on Voluntary Certification Program for Innovation

As part of its ongoing effort to support innovation, the FDIC issued a request for information today seeking input on whether a public/private standard-setting and voluntary certification program could be established to support financial institutions’ efforts implement innovative models, products and services developed by third-party fintech firms. Comments are due 60 days after publication in the Federal Register.

“The development of relevant standards, along with the development and application of a voluntary certification process to ensure that models conform to those standards, could potentially allow for more financial institutions—particularly community banks—to engage with third parties, including fintechs; permit FDIC supervision resources to be used more efficiently and effectively; and reduce costs of doing business for financial institutions and providers of models,” the FDIC said.

The agency said it is also considering whether a certification program would support the due diligence process for third-party technology providers, particularly for community banks.