FDIC Signage Changes Risk Confusing Bank Customers, Critics Say

An FDIC proposal dialing back requirements for banks to display the agency’s official sign online and in mobile apps risks leaving customers vulnerable to steep losses as happened with the failure of bank-fintech middleman Synapse Financial Technologies Inc., financial regulation advocates said.

Banks’ complaints about the 2023 digital signage requirements from the Federal Deposit Insurance Corp. are “an absurd and shameful exaggeration,” Better Markets, a financial regulation advocacy group, said in a comment letter ahead of a deadline Monday.

“Clearly labeling the financial products, such as savings accounts, in which consumers’ money is protected by FDIC deposit insurance and the ...