Introduction
A quick summary of the new official digital sign requirement of the FDIC is that effective January 1, 2025, this logo:
must be replaced by this logo:
For readers who missed part 1 of this series or want to reread the original blog can find it here.
However, the new lengthy regulation raised many questions by the industry, and Perficient’s Financial Services Risk and Regulatory consultants have been researching answers and questioning regulators to provide in order to provide our current and future clients the answers to the following questions that have been raised.
Detailed Q&A:
#1. Are IDIs’ websites considered deposit taking channels for purposes of the digital signage requirements?
Answer: Under part 328, the FDIC official digital sign must be displayed on “digital deposit taking channels,” which includes IDIs’ “websites and web-based or mobile applications that offer the ability to make deposits electronically and provide access to deposits at insured depository institutions.” 12 CFR § 328.5(a). If an IDI’s website is purely informational, with no ability to make deposits or access deposits, it would not be a digital deposit-taking channel.
#2. Can the official digital sign appear only on the IDI’s “home page” and not on the other web pages that make up the website?
Answer: No. Under part 328, the FDIC official digital sign must be displayed on the (1) initial or homepage of the IDI’s website or application, (2) landing or login pages, and (3) pages where a customer may transact with deposits. For example, the FDIC official digital sign should be displayed where a mobile application allows customers to deposit checks remotely, because this electronic space is in effect a digital teller window. 12 CFR § 328.5(d).
#3. Where are we required to place the official digital sign on a bank webpage or app to ensure compliance with the “clear,” “continuous,” and “conspicuous” placement of the digital sign?
Answer: The final rule requires IDIs to display the official digital sign in a clear, continuous, and conspicuous manner. In general, the FDIC would expect to see official digital signs displayed on the applicable pages in a manner that is clearly legible to all consumers to ensure they can read it easily. The official digital sign could be displayed above the IDI’s name, to the right of the IDI’s name or below the IDI’s name, but under all circumstances, the official digital sign continuously displayed near the top of the relevant page or screen and in close proximity to the IDI’s name would meet the clear and conspicuous standard under the rule.
#4. Can the official digital sign be dismissed once a customer logs in?
Answer: No. The final rule requires that the official digital sign be displayed “in a continuous manner,” which means it must remain visible on the (1) initial page or homepage of the website or application, (2) landing or login pages, and (3) pages where the customer may transact with deposits. 12 CFR § 328.5(d). The final rule, however, does not require the official digital sign to continue to follow the user as they scroll up or down the screen.
#5. How should IDIs display the FDIC official digital sign on mobile devices with screen resolutions that do not support the ability to display the entirety of the digital sign on one line?
Answer: If the image does not fit a particular device or screen, the official digital sign can be scaled, “wrapped,” or “stacked” to fit the relevant screen and may satisfy the “clear and conspicuous” requirement.
#6. If an IDI’s name appears at the top of its website, and it also appears in the website’s footer, does the new FDIC official digital sign need to be displayed at the top of the page and also in the footer?
Answer: Under the final rule, IDIs are required to display the FDIC official digital sign “clearly and conspicuously” in a continuous manner; the official digital sign continuously displayed near the top of the relevant page or screen and in close proximity to the IDI’s name would meet the clear and conspicuous standard under the rule. 12 CFR § 328.5(f). IDIs are not required to display the FDIC official digital sign every time the IDI’s name appears, such as in the footer of the website.
#7. To satisfy the final rule’s official digital sign requirements, can the official digital sign be placed in the footer of the webpage?
Answer: No. For purposes of satisfying the final rule, IDIs are required to display the official digital sign in a clear, continuous, and conspicuous manner. The official digital sign continuously displayed near the top of the relevant page or screen and in close proximity to the IDI’s name would meet the clear and conspicuous standard under the rule. 12 CFR § 328.5(f). Therefore, placing the official digital sign in a footer of an IDI’s webpage would not meet the clear, conspicuous, and continuous display requirement.
#8. If an IDI displays the FDIC official digital sign on its mobile app’s homepage and alongside the IDI’s logo within the app, is it also necessary to include this signage on the transaction portal before a customer completes a transaction?
Answer: It depends in part on what type of transaction is being completed. The FDIC official digital sign must be displayed on the (1) initial or homepage of the bank’s website or application, (2) landing or login pages, and (3) pages where a customer may transact with deposits. 12 CFR § 328.5(d). For example, the FDIC official digital sign should be displayed where an IDI’s mobile application allows customers to deposit checks remotely, because this is an electronic space where a customer is transacting with deposits.
However, if a consumer is completing a transaction by using an embedded third-party payment platform that consumers: (a) access after logging into their IDI’s website; and (b) utilize to initiate payments/move funds out of the IDI, then the official digital sign should not be posted on those pages.
#9. What are examples of “pages where the customer may transact with deposits” that require the display of the FDIC official digital sign?
Answer: Examples of “pages where the customer may transact with deposits” that require the display of the FDIC official digital sign include, but are not limited to: mobile application pages that allow customers to deposit checks remotely; and, pages where customers may transfer deposits between deposit accounts held within the same IDI (e.g., checking to savings or vice versa). On the other hand, the FDIC would not expect an IDI to display the FDIC official digital sign on pages where a customer is transferring money from a deposit account to a non-deposit account.
#10. What is the definition of “landing or login page”?
Answer: For purposes of the final rule, a “landing or login page” generally refers to an insured depository institution’s (IDI’s) webpage or screen from which a customer is able to log into the IDI’s digital deposit taking channel. Specifically, the terms include pages where customers enter their credentials (e.g., username and password) or use other authentication methods (e.g., face identification) to access an IDI’s website or banking application. The terms are intended to cover various types of logins, whether with usernames and passwords, face IDs, thumbprints, etc.
#11. Where should the official digital sign be placed if the IDI’s app or website does not currently display the IDI’s full name; it only displays the IDI’s logo or a partial name?
Answer: The final rule provides that an official digital sign be continuously displayed near the top of the relevant page or screen and in close proximity to the IDI’s name would be considered clear and conspicuous. 12 CFR § 328.5(f)
If an IDI displays its full name, a partial name of the IDI, or the logo of the IDI (or any similar symbol used to identify the IDI) near the top of the page or screen, and continuously displays the official digital sign in close proximity to it, this approach would be considered clear and conspicuous.
#12. Do the FDIC official digital sign requirements apply to downloadable content such as terms and conditions or other digital collateral available via an IDI’s online channels?
Answer: Part 328 requires IDIs to display the official digital sign on their digital deposit-taking channels on the following pages or screens: initial or homepage of the website or application, landing or login pages, and pages where the customer may transact with deposits. Downloadable content that is available from an IDI’s website would not likely be viewed as a page or screen where the official digital sign would be required.
#13. Is an IDI required to display the FDIC official digital sign in the app store where the IDI’s app is available for download?
Answer: No. An IDI is not required to post the official digital sign in the app store where its app is available for download.
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