After the Attorneys General of seven states and the District of Columbia filed a lawsuit against the Federal Deposit Insurance Corporation (FDIC) challenging its recent rule to permit and promote banks’ partnering with financial technology (“fintech”) firms to offer expanded services and financial products, Online Lenders Alliance CEO Mary Jackson issued the following statement:
“The FDIC rule was a major step forward for the millions of financially underserved consumers, including the many Americans with nonprime credit scores. By resolving longstanding uncertainties, the FDIC rule furthered the goal of promoting banks’ ability to partner with non-bank financial technology firms—partnerships which lead to more, better, and safer financial options for consumers to choose from.
“Bank-fintech partnerships lead to more competition in the marketplace, which ultimately benefits consumers. This is a good thing, and the FDIC is right to promote it. For the sake of the consumers who rely on these products, we hope that the FDIC’s rule is upheld.”