UPDATE 5/20/2024: Insured depository institutions can email ocomgraphics@fdic.gov requesting a copy of the FDIC Official Digital Sign. In the request, insured depository institutions should include their bank letterhead as well as the bank’s full address. The requirement to display the new FDIC official digital sign is only for FDIC insured institutions, non-bank third parties are not permitted to display the FDIC Official Digital Sign on their digital or mobile sites.
On Wednesday, December 20th, 2023, the Federal Deposit Insurance Corporation (FDIC) Board of Directors adopted a final rule to amend Part 328 of its regulations to modernize the rules governing the use of the official FDIC sign in advertising statements, specifically uses in digital and mobile channels. Among these changes, the FDIC also took time to clarify other parts of the regulation, including false advertising, misrepresentations of deposit insurance coverage, and misuse of the FDIC name and logo.
Part 328 describes the official sign of the FDIC and outlines its use by insured depository institutions. It also prescribes the official advertising statement insured depository institutions must include in their advertisements. From this regulation, the FDIC defined the “official sign” to be used and outlined display requirements for size (7″ by 3″) and coloring (black lettering and gold background). However, the FDIC also outlined in § 328.2 Display and Procurement of Official Sign that instead of displaying the official sign, an insured depository institution may display signs that vary from the official sign in size, color, or material at so long as the variance was not smaller in size than the official sign and must have the same color for the text and symbols. This part established clear display requirements but provided flexibility for institutions for procurement.
The amendment to the final rule is intended to enable consumers to better understand when they are conducting business with an insured depository institution (“IDI”) and when their funds are protected by the FDIC's deposit insurance coverage. The FDIC’s recent amendment to part 328 of its regulations covers key changes across a variety of parts of the institution. Some key items include:
One of the biggest changes under this amendment is the official digital sign outlined for use by the FDIC. The FDIC believes that the use of the FDIC official digital sign will assist consumers in better understanding when they are conducting business with an insured institution vs when they are interacting with a non-bank entity. Seeing the FDIC official digital sign on all IDI websites and mobile applications will promote awareness that consumers are doing business with FDIC-insured institutions.
While the FDIC noted that they are finalizing a design for the official digital sign, they did provide key information on what expectations will be for display. The rule specifies the language, color, size, and font to establish an easily recognizable, consistent digital sign designed to convey “the certainty and confidence historically provided by the FDIC” official sign at banks' teller windows. The new FDIC official digital sign expectations:
Recognizing the variability in the design and color of financial institution websites, the final rule also provides an alternative color if the specified colors, navy blue and black, would not be legible against the background design colors of the IDI's web page or mobile banking application. If the official FDIC digital sign in these colors would be illegible due to the color of the background, the final rule requires the “FDIC” and the one line of smaller type to the right of “FDIC” to both be displayed in white (hexadecimal color code #FFFFFF).
The FDIC will also review options to provide an image of the FDIC official digital sign to IDIs upon request at no charge, similar to the process by which the FDIC provides banks with physical official signs today. As of January 2024, below is the current design for the FDIC official digital sign under § 328.5:
The term “advertisement,” as used by the FDIC in Part § 328.3 of the original rule, is outlined as a commercial message, in any medium, that is designed to attract public attention or patronage to a product or business. Official advertising statement. The FDIC’s official advertising statement is “Member of the Federal Deposit Insurance Corporation”. Two additional clarifications are also offered under the subpart:
With the recent amendment to the final rule, the FDIC proposed to expand covered institution’s options for use of a short advertising statement to include the term “FDIC-insured.” For advertising, under the final rule, IDIs will have the option to use “FDIC-Insured” as a short form of the official advertising statement to satisfy advertising statement requirements.
Some of these official terms might prove confusing at first glance. However, the FDIC did outline it does not intend for the digital sign requirement to overlap with the general advertising statement requirements that apply to IDIs. For example, the advertising statement would not be required on web pages where an IDI displays the digital official sign, such as a homepage. In these situations, under § 328.6(d)(10), the advertising statement is unnecessary because the inclusion of the digital official sign makes it clear that the IDI is insured by the FDIC. It’s important to note that IDIs will remain responsible for complying with the official advertising statement requirements for other qualifying advertisements, including those contained on other web pages.
Luckily, these changes announced on December 20th, 2023 come with adjustment time windows as well. The amendments made by the final rule will take effect on April 1, 2024 (though this is NOT an April Fools joke) and come with an extended expected compliance date of January 1, 2025. To get started, financial institutions should:
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