The Federal Deposit Insurance Corporation [FDIC] has announced ‘Tech Sprint’ to reach the ‘last mile’ of unbanked Americans. FDIC maintains stability and public confidence in the nation’s current financial system. The ‘tech sprint’ is designed to explore new technologies and techniques in the US fintech ecosystem. It would help expand the capabilities of banks to meet the needs of unbanked individuals and households.
What is FDITECH Tech Sprint?
According to FDIC’s recent report, nearly 7 million American households are still unbanked. These comprise families belonging to the Black, Hispanic, American Indian or Alaska Native households.
FDITECH is FDIC’s non-monetary reward tech sprint. It is purposefully conceived to identify, nurture and support financial institutions that help the nation reach the last mile of unbanked Americans. The tech sprint will challenge participants from the fintech space in identifying better resources and tools for advanced banking infrastructure.
Currently, the American banking system is heavily influenced by disruptive technologies such as DeFi, Blockchain, Cryptocurrency, Conversational AI and RPA. By participating in FDITECH, banks, non-profit organizations, academic institutions, private sector companies, and others can contribute to the neo-banking evolution.
At the time of this announcement, FDIC Chairman Jelena McWilliams stated that many Americans are still unbanked. The FDITECH will target these unbanked populations.
FDIC Chief Innovation Officer Sultan Meghji added, “Community banks have deep roots in their communities but often lack access to the resources that would allow them to reach those who remain outside our banking system. We are challenging those who participate in our tech sprint to identify the untapped data and innovative tools that can help community banks overcome those vexing obstacles to a more inclusive banking ecosystem.”
Currently, the FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.