The Federal Deposit Insurance Corporation (FDIC) has appointed fintech executive Sultan Meghji as its first-ever chief innovation officer. Meghji, co-founder of fintech Neocova, will spearhead its efforts to promote innovative technologies across the industry.

Why should we care?
The FDIC is uniquely positioned to move the needle on innovation developed through bank-fintech collaborative efforts, Meghji told TheFR. Working within the regulatory system is the most effective way for nonbanks to bring innovative banking products to market, he suggested, noting that fintechs that choose to work outside of the regulatory system will face hurdles. “I’m honored to join in supporting the banking sector, making it more resilient, amplifying what’s there, [and] innovating to build a better, more inclusive banking system of the future,” he said. In recent months, the FDIC has been on a trajectory to create new ways to enable technology advances in the industry through bank-fintech partnerships. In December, it issued a new Brokered Deposit Rule, which narrowed the definition of deposits that are deemed brokered, thereby unlocking new avenues for fintechs to partner with banks. In July, the agency sought input on the creation of a standards-setting organization that would devise best practices for bank-fintech partnerships. Meghji has been CEO of Neocova since January of 2016, a company which offers secure, cloud-native, artificial intelligence-based software for community banks and credit unions. He has also worked on an aid mission to help implement digital banking in Kenya, Tanzania, and Uganda. As Meghji departed, Matt Beecher became CEO of Neocova, where he previously served as president and chief operating officer.