PROVIDENCE – The American Fintech Council, an industry association representing fintech companies and innovative banks, recently testified that it opposes Rhode Island legislation that it said would put state-chartered community banks at a disadvantage by removing financial options for customers.
“Under the guise of consumer protection, these bills … will harm consumers who need access to safe and affordable financial services and will put local state-chartered banks at a disadvantage,” Phil Goldfeder, CEO of the council, told members of the Senate Committee on Commerce and Policy. “AFC’s diverse members represent a cross-section of responsible Fintech companies that embrace transparency and are rooted in regulatory compliance and consumer protection. Our members have stepped in to serve communities long forgotten by large financial institutions and are creating safe, responsible, and affordable financial options for Rhode Island … families.”
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The council is opposed to bills in the House and Senate that it says would opt the state out of a federal law that provides state-chartered community banks the same opportunities and rights as nationally chartered banks.
Although the legality of such legislation is still in question, passage would create uncertainty for responsible community banks, the council said.
The text of the legislation says it would opt Rhode Island out of provisions of the “Depository Institutions Deregulation and Monetary Control Act of 1980,” which allow financial institutions chartered in states other than Rhode Island to be exempt from interest rate limits that apply to financial institutions chartered in the state.
