On December 13, 2022, the U.S. Federal Deposit Insurance Corporation (FDIC) issued a notice of proposed rulemaking that would modify its rules governing the use of the official FDIC sign to reflect how depositors do business today, including through digital and mobile channels (NPRM).1 The NPRM aims to enable customers of insured depository institutions (IDIs) to clearly understand when their funds are protected by the FDIC’s deposit insurance coverage. The NPRM sets forth requirements for an IDI’s use of FDIC signage in its digital deposit-taking channels. The NPRM would also apply to financial technology (fintech) companies and others that enable customers to access insured depository products offered by IDIs. For example, it would apply to broker-dealer sweep programs. Public comments on the NPRM are due by February 21, 2023.
The FDIC has observed that arrangements between IDIs and fintechs can make it more difficult for customers to understand when they are doing business with an IDI and when their funds are protected by the FDIC’s deposit insurance. The FDIC has also observed increased misleading representations about deposit insurance in internet banking channels, which the FDIC asserts can result in consumer confusion and harm. Through the NPRM, the FDIC hopes to bring the certainty and confidence provided by the FDIC sign to the varied and evolving digital channels through which depositors are increasingly handling their banking needs.
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