American Fintech Council Backs Bank-Fintech Partnership Enhancement Act

On December 16, 2025, the American Fintech Council (AFC) issued a statement supporting the Bank-Fintech Partnership Enhancement Act (H.R. 6552), urging Congress to pass the legislation. The bill calls for a comprehensive federal study examining the impacts of bank-fintech partnerships on community banking, financial innovation, and consumer protection. The AFC argued that the study would help modernize oversight of these partnerships while strengthening community banks' ability to compete through technology.

The legislative push comes as sponsor banks derived over 52% of revenue from embedded finance partnerships in 2024, underscoring the financial significance of these arrangements. By advocating for structured federal review rather than piecemeal regulation, the AFC seeks to establish a more predictable regulatory environment for BaaS and embedded finance models. The outcome of this legislative effort could significantly shape the compliance and operational frameworks that govern bank-fintech partnerships across the United States.