Banks could receive leeway on digitally authenticating documents, as suggested in a potential regulation by the FDIC.
The Federal Deposit Insurance Corporation (FDIC) has announced a proposed rule that aims to provide additional flexibility to insured depository institutions while maintaining clarity for consumers. The proposal, published in the Federal Register on August 22, 2023, seeks to amend the agency's signage rules for banks' digital channels.
Under the current rules, banks were required to inform customers of FDIC insurance on a bank's landing page and explicitly label both insured and non-deposit products. However, the 2023 final rule, which had already undergone revisions based on feedback from banks and other industry participants, was seen as overly prescriptive and technical by some stakeholders.
In response, the FDIC has proposed changes that would provide banks with more flexibility in displaying the FDIC official digital sign on screens and pages with limited space, particularly for mobile banking. The proposal would also enable consumers to better understand when they are conducting business with an FDIC-insured depository institution and when their funds are protected by FDIC deposit insurance coverage.
One of the key changes proposed is the relaxation of the signage requirements, allowing banks to include the FDIC disclaimer on fewer webpages, focusing on pages related to non-deposit products. The proposal would scrap the requirement for banks to inform customers of FDIC insurance on a bank's landing page.
The FDIC official digital sign display requirements for Automated Teller Machines (ATMs) are also addressed in the proposal. The agency aims to provide clarity and reduce burden with these changes, addressing implementation issues that have arisen since the 2023 final rule was implemented.
The 2023 final rule required FDIC-insured depository institutions to display a new FDIC sign across all digital channels by January 2025. However, the proposed changes aim to clarify and provide more flexibility with respect to the FDIC official digital sign design on digital deposit-taking channels.
The FDIC will accept comments on the proposal for 60 days after publication in the Federal Register. The agency encourages all stakeholders, including banks, consumers, and industry associations, to provide feedback on the proposed changes.
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