Request for Information on FDIC Official Sign and Advertising Requirements and Potential Technological Solutions
Request for information and comment.
RIN Number: "RIN 3064-ZA14"
Citation: "86 FR 18528"
Page Number: "18528"
"Notices"
Agency: "
SUMMARY: As banks and savings associations adjust their business models to innovate and remain competitive, and as such digital transformation continues to accelerate, the
DATES: Comments must be received by
ADDRESSES: You may submit comments, identified by RIN 3064-ZA14, by any of the following methods:
* Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the agency website.
* Email: [email protected]. Include RIN 3064-ZA14 in the subject line of the message.
* Mail:
* Hand Delivery/Courier: Comments may be hand-delivered to the guard station at the rear of the
All comments received must include the agency name and RIN 3064-ZA14 for this rulemaking.
Public Inspection: All comments received will be posted without change to https://www.fdic.gov/regulations/laws/federal/--including any personal information provided--for public inspection. Paper copies of public comments may be ordered from the
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: The
On
As banks and savings associations adjust their business models to innovate and remain competitive, and as such digital transformation continues to accelerate, the
Although the
FDIC Official Sign and Advertising Statement Requirements
The
FOOTNOTE 1 12 U.S.C. 1828(a). See Banking Act of 1935, Public Law 74-305, section 101(v) (
FOOTNOTE 2 71 FR 40440 (
Technology and Innovation
The
Technology has advanced the business of banking in many ways, including how and where depositors interface with banks and savings associations when making deposits. The internet, through online and mobile banking, smart phone applications (apps), digital wallets, and other tools, has had a profound effect on the way banking and deposit-taking is conducted. Some banks have no physical branches. Other banks with physical branches are also increasingly offering ways to open and manage accounts online or through mobile apps. Remote deposit capture for depositing checks, introduced in the early 2000s, has become a common feature of many banking apps. In addition, some banks have moved away from the traditional branch/bank teller models to electronically-staffed kiosks and pop-up facilities and teller-less cafes where deposits can be accepted on tablets. In addition, some consumers "deposit" funds with prepaid account providers and technologically-focused financial companies (fintechs), some of which are not themselves
FOOTNOTE 3 Some uninsured companies enter into deposit arrangements with
Given these banking industry developments, the
Request for Comment
The
Official Sign
The FDI Act requires that insured depository institutions display a sign relating to the insurance of deposits at each place of business maintained by that institution in accordance with regulations issued by the
FOOTNOTE 4 See 12 U.S.C. 1828(a)(1)(A). END FOOTNOTE
FOOTNOTE 5 Part 328 does not apply to uninsured offices or branches of insured depository institutions located outside
FOOTNOTE 6 12 CFR 328.1(a). END FOOTNOTE
FOOTNOTE 7 12 CFR 328.2(a)(1)(i). END FOOTNOTE
FOOTNOTE 8 12 CFR 328.2(a)(1)(ii). "Remote Service Facilities" are defined as including "any automated teller machine, cash dispensing machine, point-of-sale terminal, or other remote electronic facility where deposits are received." END FOOTNOTE
FOOTNOTE 9 12 CFR 328.2(a)(2). END FOOTNOTE
The
1. Should the rule continue to require the sign be a minimum size and a specific color? Is this needed to ensure consumers understand "deposit insurance?"
2. Should the rule continue to link the placement of the sign to each teller station or window where insured deposits are usually and normally received?
3. Should the rule take into account changes in places where deposits are "usually and normally received" by banks? How?
4. Should the
5. Does the rule's definition of "Remote Service Facility" appropriately reflect current banking practices? For example, should the list of facilities (any automated teller machine, cash dispensing machine, point-of-sale terminal, or other remote electronic facility where deposits are received) be broadened? If so, what other "facilities" should be included?
6. Are
7. Are
8. Are alternative means of displaying an official
9. As noted above, the current regulation requires that the official
10. To what extent do the existing rules enable consumers to distinguish between
Official Advertising Statement
The current rule requires bank advertisements /10/ that promote deposit products and services or promote non-specific banking products and services offered by the institution to state that the bank is a "Member of the
FOOTNOTE 10 "Advertisement" is defined as "a commercial message, in any medium, that is designed to attract public attention or patronage to a product or business." 12 CFR 328.3(a). END FOOTNOTE
FOOTNOTE 11 12 CFR 328.3(c)(1). END FOOTNOTE
FOOTNOTE 12 12 CFR 328.3(b)(2). END FOOTNOTE
FOOTNOTE 13 12 CFR 328.3(c)(2). END FOOTNOTE
Insured depository institutions may not include the official advertising statement or other statements that imply Federal deposit insurance in any advertisement relating solely to "non-deposit products" or "hybrid products." /14/ With "mixed" advertisements for both insured deposit products and uninsured or hybrid products, the official advertising statement must be segregated within the ad. /15/ "Hybrid product" means "a product or service that has both deposit product features and non-deposit product features." /16/ "Non-deposit products" are defined to include "insurance products, annuities, mutual funds and securities" but not credit products. /17/
FOOTNOTE 14 12 CFR 328.3(e)(2) and (e)(3). END FOOTNOTE
FOOTNOTE 15 12 CFR 328.3(e)(4). END FOOTNOTE
FOOTNOTE 16 12 CFR 328.3(e)(1)(ii). END FOOTNOTE
FOOTNOTE 17 12 CFR 328.3(e)(1)(i). END FOOTNOTE
The
11. Can the regulation be better clarified regarding which types of advertising require the inclusion of the official advertising statement? Should some forms of advertising currently subject to the requirement be made exempt? Are there newer forms of advertising that do not now but should include the official advertising statement?
12. How do banks currently provide the advertising statement when promoting deposit products through non-traditional channels?
13. If a bank is identified in a nonbank's promotion or advertisement for a deposit product or service, should the advertising statement be required, or conversely, should it be prohibited given that the advertisement is from an uninsured entity?
Technological Solutions
The
The
14. Do consumers look for the
15. What technological options or other approaches could be utilized to allow consumers to distinguish
16. If the
17. If the
Dated at
Assistant Executive Secretary.
[FR Doc. 2021-07356 Filed 4-8-21;
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