BPI, CBA offer insight into digital banking products, services


Bank Policy Institute (BPI) and Consumer Bankers Association (CBA) personnel expressed favoring banks providing digital-assets products and services in response to the Federal Deposit Insurance Corporation’s (FDIC) Request for Information.

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In correspondence forwarded to the FDIC regarding the solicitation of input digital banking activities, the BPI and CBA indicated banks are at the forefront of technological innovation and seek to remain so in the future.

“Banks are already subject to comprehensive and robust risk management, supervision and examination processes, are subject to consumer protection laws and regulations, maintain strong capital buffers, carry deposit insurance, undertake well-developed anti-money laundering practices and know-your-customer programs, and have substantial experience with incorporating new technologies into the financial system,” the organizations wrote. “Banks have the resources, talent, and expertise to implement robust compliance programs, which is especially important with respect to digital assets.”

The BPI and CBA maintain that digital offerings conducted by regulated and supervised banks are safer for consumers and the financial system.

“Digital assets present potential benefits to banks, from reducing inefficiencies in traditional financial activities to allowing banks to offer innovative products and services to meet consumer demand,” the BPI and CBA concluded. “Despite concerns as to the current lack of regulatory guidance in some contexts, banks are beginning to offer digital asset management and custodial services, both in order to meet consumer demand for these services and because of promising regulatory guidance from the OCC recognizing the existing authority of banks to provide custodial services.”

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