The Office of the Comptroller of the Currency (OCC) recently issued a Request for Information (RFI) on digital innovation in community banking. The OCC’s RFI is a call to action. This initiative underscores the urgency for financial institutions (FIs) to modernize their operations, enhance customer experiences, and stay competitive in an increasingly technology-driven industry. Here are five key insights from the OCC’s RFI highlighting the direction of community banking and what it will take to get there.
1. Digitization is no longer optional
This RFI represents a shift in tone from exploratory to urgent. While it may seem like another regulatory inquiry, the subtext is clear:
The digital future isn’t coming. It’s already here. And community banks and credit unions need support to catch up.
2. Regulators understand the challenges of community banks and credit unions
The OCC’s RFI asks community financial institutions, fintechs, and technology partners to weigh in on the biggest roadblocks to modernization. Their questions demonstrate that the OCC understands the pressure community banking is under:
- How do you modernize when tech talent is scarce?
- How do you manage risk when third parties move faster than you can?
- How do you stay compliant when the rules keep changing?
- And how do you keep up with customers who expect a Venmo-style experience from their hometown bank?
These are challenges PortX tackles every day. And while they’re felt acutely in U.S. markets, they’re part of a broader global trend.
3. Global success stories point the way forward
In places like Singapore, the UK, and Australia, regulators have already pushed hard on open banking, digital onboarding, and API-first infrastructure.
For example, the UK’s open banking initiative now supports nearly 12 million consumers and businesses after seven years in operation. And the results are compelling, having contributed to greater financial inclusion, lower compliance costs for FIs, and new revenue streams from ecosystem-style banking models.1
In Australia, banks are partnering with fintechs to deliver real-time loan approvals and embedded finance experiences that would’ve been unthinkable a decade ago.2
These aren’t just technology upgrades—they’re full-scale transformation stories. And U.S. community FIs have every opportunity to follow suit, given they have access to the right tools and partners to succeed.
4. Community FIs need partners that speak “tech and reg”
For community financial institutions, the path to digital transformation isn’t just about adopting new tools—it’s about navigating the intersection of innovation and oversight. Community FIs will not likely become technology companies overnight, but they need partners who can bridge the gap between legacy infrastructure and modern expectations.
The right partners should:
- Offer solutions that easily integrate with, not disrupt, core systems.
- Understand the nuanced regulatory environment that community FIs operate in.
- Help deliver seamless, secure, and compliant AI-powered digital experiences that users expect.
In this next phase of banking, FIs need more than just vendors—they need strategic allies who understand the language of code and compliance and can help translate vision into viable, scalable execution.
5. Collective insight will drive the industry forward
The OCC’s RFI doesn’t just reflect regulatory curiosity—it reflects an invitation to shape the future of community banking. By asking for input from banks, credit unions, and fintechs, the agency acknowledges a fundamental truth: no single player can solve these challenges alone.
Collective insight from real-world experience is essential for building smart regulations, resilient infrastructure, and scalable innovation.
Now is the time for industry stakeholders to align around shared goals: enabling access, reducing friction, and building a more inclusive financial ecosystem. The FIs that engage early and contribute thoughtfully will help set the tone for community financial services in the decade ahead.
Join the Conversation
We invite community banks, credit unions, industry groups, technology providers, and other stakeholders to share their perspectives on the OCC’s RFI. Your insights will contribute to a more comprehensive understanding of the digitalization landscape and inform strategies that drive meaningful progress.
At PortX, we have these conversations with FIs every day. Whether it’s navigating legacy system constraints, interpreting shifting regulatory expectations, or architecting modern API strategies, we’re deeply engaged in helping banks and credit unions innovate with clarity and confidence.
Start a conversation with our team today to learn more about how PortX helps FIs solve complex digital transformation challenges.
- https://www.electronicpaymentsinternational.com/news/uk-open-banking-turns-seven-industry-reaction/
- https://stockhead.com.au/tech/ai-is-speeding-up-loan-approvals-and-asx-fintechs-like-moneyme-are-ahead-of-the-game/
