2023-01-03T10:15:13-05:00January 3rd, 2023|1- Financial Services Management|

FDIC Coverage Protections

In the wake of increasing instances in which customers are confused and even misled about the extent to which fintech and cryptoasset holdings are insured deposits, the FDIC is proposing new standards addressing this problem as well as ways to modernize IDI representations of their own FDIC-insured offerings in branches and through the fast-changing array of retail banking delivery channels.  The last time these signage standards were updated beyond a generic FDIC 2022 rule barring misrepresentation was 2007, a time of course well before digital finance took off.  Now, new signage, displays, or postings would need to clearly, conspicuously, and continuously advise retail customers when funds are FDIC insured and that FDIC insurance does not cover offerings in the facilities that would now be segregated from where insured deposit are receipt to accept non-deposit funding.