As an agency that prides itself on building beautiful (and functional) bank websites, you can imagine this was one event we didn’t want to miss. Most of our banking customers, as well as bank marketers I work with through the various marketing forums I facilitate, are asking questions I was glad to see the FDIC make a proactive effort to help us all understand what’s required.
Overview of the New Regulations
First, a bit about timing and the purpose of the update to set the stage. The final rule, which became effective on April 1, 2024, has a compliance date of January 1, 2025. The intent is to modernize how FDIC-insured institutions use official signs and advertising statements. This update reflects significant changes in banking practices, especially the increased use of digital and mobile channels.
Key Updates and Requirements
1. New FDIC Official Digital Sign: Banks are now required to display a new FDIC official digital sign on their websites, mobile apps, and ATMs. This digital sign is designed to provide clear and conspicuous assurance to consumers that they are dealing with an FDIC-insured institution.
The above slide from the FDIC webinar shows an example of the logo that needs to be added to all bank websites. And below is the FDIC official digital sign(s).
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2. Enhanced Consumer Protection: The rule aims to help consumers better understand when their funds are protected by FDIC deposit insurance, particularly in the digital realm. This includes clear differentiation between insured deposits and non-deposit products, which may cause confusion.
3. Misrepresentations and Misuse: The final rule addresses misleading representations about FDIC insurance, often seen online. It prohibits any person or entity, including non-banks, from misusing the FDIC name or logo or making false statements about deposit insurance.
4. Signage Requirements:
- Branches: Banks must continue to display the FDIC official sign in branch locations. They now have flexibility in placement, including the use of electronic media.
- Digital Channels: The FDIC official digital sign must be displayed clearly, continuously, and conspicuously on homepages, landing pages, login pages, and any pages where deposits are taken.
The above slide from the FDIC webinar shows an example of the logo implemented on a sample bank website.
5. Non-Deposit Products: Banks offering both deposit and non-deposit products must display a non-deposit sign indicating that non-deposit products are not insured by the FDIC and may lose value. This sign must also be clear, conspicuous, and continuous.
6. Policies and Procedures: Banks are required to establish written policies and procedures to ensure compliance with Part 328, including monitoring third-party compliance.
Implementation and Compliance
Although the compliance date is set for January 1, 2025, some banks have already begun implementing the new requirements, including displaying the official digital sign on their websites. Here at WSI, all of our in-process bank website projects are being designed and developed with the new digital sign elements in place. Plus, we’re working closely with our existing clients to update their websites well in advance of the deadline, as the FDIC encourages early adoption to ensure smooth compliance by the deadline.
Upcoming Seminars
This webinar is the first in a series of four planned for 2024, aimed at providing further guidance and addressing questions from stakeholders. Future seminar dates will be announced on the FDIC's banker seminar webpage. We recommend you bookmark this page and check back often (or sign up for our email updates, and we’ll be sure to let you know as soon as we know)!
For detailed information, including access to the final rule and further guidance, bank officers, employees, and other stakeholders are encouraged to visit the FDIC website or contact the FDIC directly.
Conclusion
The FDIC’s updated regulations are a critical step in ensuring that consumers remain confident and informed about the safety of their deposits, especially as banking continues to evolve in the digital age. By adhering to these new requirements, banks can enhance transparency and trust, ultimately strengthening the stability of the financial system.
If you’d like to keep updated on when the next FDIC webinar will be - or join other WSI webinar events on digital marketing strategies or trends in bank website development, be sure to sign up for email updates. With over 30 years of combined experience in banking and the world of digital, we’ve got lots of ideas on the “digital direction” your bank may be headed and would love to keep you informed.