U.S. Lawmakers Say Bank Technology Oversight Is Slowing Innovation

A subcommittee of the U.S. House Financial Services Committee is concerned that banks and fintech companies face unclear rules and review standards when partnering to offer real-time payments, AI and digital-asset services, often delaying their launch. The issue affects banks’ competitiveness, consumer protection and whether innovative services can enter the regulated financial system.

At the latest hearing, lawmakers pressed the Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency to explain delays in technology reviews. Regulators said policy was shifting away from its previous tendency to block such activities and toward redefining oversight of partnerships and digital assets. The matter did not involve a specific transaction amount, and reports did not provide the exact date of the hearing.