Request for Information From FDIC

The FDIC is trying to figure out how to modernize the banking system.  They put out a request for information and it’s linked here.    They state,

The FDIC is committed to increasing transparency, improving supervisory and regulatory efficiency, supporting innovation in banking, and providing opportunities for public feedback. This RFI seeks input on whether a standard-setting and voluntary-certification program could be established to support financial institutions’ efforts to implement models and manage model risk by certifying or assessing certain aspects of the models themselves, and to conduct due diligence of third-party providers of technology and other services by certifying or assessing certain aspects of the third-party providers’ operations or condition. The FDIC is especially interested in information on models and technology services developed and provided by financial technology companies, sometimes referred to as “fintechs.”

This is part of their FDiTech initiative. which was started over the past year.

After the financial crisis, I didn’t agree with the way we bailed out banks nor did I agree with the Dodd-Frank law that was passed.  Instead of increasing competition, it decreased competition and killed community banking.

When you look at the riots today and the lack of access to capital in many parts of America, the death of community banking is partly responsible for that.

One of our portfolio companies FinMkt has innovated a lot in the B2B part of this space.  Recently they rolled out new products designed to help contractors and people doing home improvement get access to capital.