Partnerships between fintech firms and banks provide access to safe and affordable credit to more than 160 million Americans.

These are people who have generally been excluded from traditional financial institutions because they have a nonprime credit score of less than 700.

For nonprime Americans, a surprise expense like a car breakdown or an important medical attention could mean relying on costly, predatory loan providers. This is exactly why regulators have long supported bank-fintech partnerships that allow FDIC-insured banks to lend to nonprime Americans in a safe, convenient and responsible way.

Just as technology companies are providing revolutionary, on-demand food delivery and transportation services, financial technology companies are partnering with traditional banking institutions to improve customer experience and increase access to financial products and services.

Federal regulators recognize the need for policies that reflect technological advances and online services, but some legislators and consumer groups cannot seem to understand why these partnerships exist or how the consumer is safer with them than without them.

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