S3 | E25: Responsible Innovation: How Fintechs and Banks Can Align for the Future
Featuring Phil Goldfeder, CEO of the American Fintech Council
What happens when innovation outpaces regulation - and when community banks must adapt to a world moving faster than ever before?
In this episode of Banking on Data, Host Ed Vincent sits down with Phil Goldfeder, CEO of the American Fintech Council (AFC), to explore how fintechs and financial institutions can innovate responsibly - with clarity, collaboration, and purpose. Their conversation ranges from the cultural shifts happening in banking to the regulator’s evolving view of innovation, and how AFC’s new Webinar Wednesdays and Policy Summit are helping shape the dialogue between banks, fintechs, and policymakers.
Listen or subscribe to the podcast: Spotify | Apple Podcasts | LumioSolutions.io/podcast
Clarity as the Foundation of Innovation
When it comes to progress in financial services, clarity is the cornerstone. Phil has seen just how quickly the rules and realities of financial innovation can change.
“There was a conference recently where I spoke two days in a row on the same topic. And what I said on day one had already evolved by day two... that’s how fast things are moving.”
In a rapidly shifting environment, even the most responsible innovators can find themselves guessing. “When you’re innovating in financial services, clarity is key,” Phil said. “Understanding the rules of the road is critical to building systems that evolve the industry responsibly.” That focus on clarity sits at the heart of AFC’s mission, which is to help innovators, regulators, and banks find common ground. Without it, Phil cautions, every player interprets the rules differently, leading to fragmentation and consumer confusion.
Regulators Are Rewriting the Narrative
One of the most powerful shifts Phil has seen in recent years comes from regulators themselves.
He recalls a recent conversation with Acting Comptroller of the Currency Jonathan Gould, who challenged the idea that innovation equals risk. “Historically, regulators saw innovation as risky,” Phil explained. Watch video here.
“Now, it’s riskier not to innovate. A community bank is more at risk if it’s not evolving and embracing new technology responsibly.”
That statement, Phil says, reflects an important cultural turning point. Regulators and industry leaders alike are beginning to recognize that innovation isn’t about taking on more risk, it’s about managing risk differently. It’s about ensuring the financial system remains adaptive, transparent, and inclusive.
Changing Culture, Not Just Technology
For community banks, innovation isn’t just about adopting new technology - it’s about shifting mindsets. Phil explained that true modernization starts with culture before code, and that lasting change requires methodical, people-first leadership.
He breaks the process into three interconnected parts:
- People: Begin by changing how your team thinks about innovation. Encourage curiosity and align leadership around a shared understanding of what responsible progress looks like.
- Process: Once the mindset shifts, focus on establishing frameworks that make innovation sustainable. Create processes that balance agility with compliance and risk awareness.
- Product: With people and processes in place, new solutions naturally follow. The goal isn’t to move faster for its own sake, but to deliver technology that strengthens the organization and its customers.
Phil emphasized that this evolution must be deliberate, not reactive - a mindset shift that allows financial institutions to embrace innovation without losing their core identity.
“You have to evolve the way your organization thinks, It’s about becoming a sounder institution... not a riskier one.”
Redefining Relationships for a Digital Generation
For Phil, this idea of redefining relationships is personal. Today’s consumers aren’t loyal because of proximity - they’re loyal because of experience. They expect immediacy, convenience, and trust, all delivered through digital channels. The challenge for community banks is to deliver on those expectations without losing what makes them unique: personal connection.
“My daughter doesn’t bank the way I bank, and I don’t bank the way my father banked. It’s not about removing relationships; it’s about redefining them.”
Ed pointed out that this is exactly where modern data infrastructure can help, not to replace the handshake, but to make that relationship more informed, timely, and relevant. In that way, innovation isn’t about replacing legacy culture, but reinforcing it.
Bridging the Dialogue: AFC’s Webinar Wednesdays
The conversation then turned to what’s next for the American Fintech Council — and how the organization is fostering collaboration at scale. This fall, AFC is launching a new initiative called “Webinar Wednesdays”, a four-part series leading up to its 9th Annual Policy Summit in Washington, D.C. Each webinar explores a different theme central to responsible innovation:
- Oct 22: Fraud Prevention — Addressing emerging risks in digital transactions
- Oct 29: RegTech & AI — The RegTech Revolution (moderated by Ed)
- Nov 5: Modern Infrastructure — Exploring Banking-as-a-Service and embedded finance
- Nov 12: Digital Assets & Payments — Navigating the future of money movement
Click here to learn more and register!
What to Expect at the AFC Policy Summit
The webinar series leads directly into the upcoming Policy Summit, which has become one of the most important gatherings for fintechs, banks, and policymakers alike. This year’s event, happening November 18–19 in Washington, D.C., will feature Acting FDIC Chair Travis Hill, Comptroller Jonathan Gould, Congressman Bryan Steil, and leaders from across the fintech and banking sectors.
But Phil is quick to note that this isn’t just another conference. “We want to make it real, not just panels and coffee breaks,” he said. “This is where industry standards and partnerships are forged.”
The Summit’s goal is clear: turn insight into impact. By connecting regulators, innovators, and financial institutions before, during, and after the event, AFC aims to accelerate responsible innovation, not just talk about it. Click here to learn more about the Summit or if you are attending be sure to say hi to Ed while you are there.
Join the Conversation
As the episode drew to a close, both Ed and Phil reflected on the bigger picture: how collaboration (not competition), will define the next generation of banking. For Lumio and AFC alike, that vision centers on shared progress. The future of finance will depend not just on innovation itself, but on how responsibly it’s built - with clarity, purpose, and collective intent.
Join us to share in the dialogue shaping the future of financial services:
Register for AFC Webinar Wednesdays: summit.fintechcouncil.org/webinar
Attend the AFC Policy Summit (Nov. 18–19, D.C.) https://summit.fintechcouncil.org/
Learn more about Lumio Solutions: lumiosolutions.io
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