What Is the Financial Services Forum and What Does It Do?

The Financial Services Forum plays a critical role in shaping discussions on banking and finance, particularly among the largest financial institutions. Its influence extends to policy debates, regulatory frameworks, and initiatives aimed at maintaining stability and growth within the sector. Given its membership of major firms, it serves as a key voice in advocating for policies that impact financial markets and the broader economy.

Organizational Mandate

The Financial Services Forum is an advocacy and research group that promotes policies supporting economic growth, financial stability, and responsible banking. It ensures that the largest financial institutions can serve businesses, consumers, and investors while maintaining a resilient financial system. By engaging with policymakers, regulators, and industry leaders, the Forum influences decisions affecting the sector’s efficiency.

A key part of its mission is advocating for a regulatory framework that balances oversight with financial institutions’ ability to innovate and compete globally. This includes analyzing the effects of capital requirements, liquidity rules, and risk management policies on lending and investment. The Forum regularly publishes research assessing how regulatory changes impact economic expansion.

Beyond regulation, the organization highlights financial institutions’ role in economic development. It supports policies that improve access to credit, maintain market liquidity, and encourage responsible lending. The Forum also examines how banks contribute to job creation, infrastructure investment, and long-term economic resilience.

Membership Standards

The Financial Services Forum has a selective membership, consisting exclusively of the largest U.S.-based financial institutions. Unlike broader industry associations, it restricts membership to firms that meet specific criteria related to asset size, market influence, and systemic importance.

To qualify, firms must typically rank among the largest U.S. financial institutions by total assets and market capitalization. Many members are designated as Global Systemically Important Banks (G-SIBs) by the Financial Stability Board, subjecting them to heightened regulatory scrutiny.

The Forum’s membership includes firms engaged in investment banking, wealth management, commercial lending, and payment processing. By bringing together institutions with diverse business models, it addresses issues affecting multiple areas of the financial system, from capital markets liquidity to cross-border transactions.

Role in Policy Formation

The Financial Services Forum engages with lawmakers, regulatory agencies, and other decision-makers to shape financial regulations. Through formal comment letters, congressional testimony, and private consultations, it seeks to influence policies affecting the banking sector. Its members provide data-driven analyses to illustrate how new regulations impact lending, economic growth, and financial market stability.

The Forum works closely with federal agencies such as the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Securities and Exchange Commission (SEC). By participating in rulemaking discussions and submitting feedback on proposed regulations, it ensures the perspectives of major financial institutions are considered before policies are finalized. It has contributed to discussions on Basel III Endgame reforms, which propose significant changes to capital requirements for large banks, providing economic impact assessments to influence these rules’ implementation in the U.S.

Beyond domestic policy, the Forum monitors global regulatory developments that could affect its members. As international banking standards evolve, it ensures U.S. financial institutions remain competitive while complying with cross-border regulations. This includes engaging with organizations like the Financial Stability Board and the International Monetary Fund to provide input on risk management standards, capital buffers, and stress testing methodologies.

Focus on Sustainable Finance

The Financial Services Forum has placed increasing emphasis on sustainable finance, recognizing financial institutions’ role in funding the transition to a low-carbon economy. Large banks influence the pace of renewable energy adoption, infrastructure modernization, and corporate sustainability initiatives through their lending and investment decisions. The Forum advocates for policies that support these efforts while ensuring financial institutions can manage associated risks.

A key focus is the standardization of climate-related financial disclosures. In response to regulatory developments such as the SEC’s climate disclosure rule, the Forum has engaged in discussions on how banks assess and report greenhouse gas emissions, financed emissions, and climate-related risks. Aligning disclosures with frameworks like the Task Force on Climate-related Financial Disclosures (TCFD) helps investors and regulators evaluate financial institutions’ exposure to climate risks while promoting transparency.

Engagement With Global Bodies

The Financial Services Forum collaborates with international organizations to ensure U.S. financial institutions align with evolving global regulatory and economic frameworks. Given the interconnected nature of modern banking, policies set by entities such as the Financial Stability Board, the Basel Committee on Banking Supervision, and the International Monetary Fund have direct implications for Forum members.

One of its primary areas of engagement is advocating for regulatory consistency across jurisdictions. Divergent financial regulations between the U.S., Europe, and Asia create compliance challenges for multinational banks, leading to inefficiencies and increased operational costs. The Forum works to ensure that international banking standards, such as Basel III capital requirements, are implemented in ways that do not place U.S. institutions at a competitive disadvantage. It also provides input on cross-border financial transaction rules to ensure global payment systems and correspondent banking relationships remain efficient and secure.

Beyond regulatory alignment, the Forum participates in discussions on global economic resilience, particularly in response to financial crises or systemic risks. It collaborates with central banks and financial authorities to assess potential threats to financial stability, including geopolitical risks, cyber threats, and market volatility. By contributing research and policy recommendations, the Forum helps shape international efforts to enhance risk mitigation strategies.

Key Topics in Digital Finance

As financial technology reshapes banking and investment services, the Financial Services Forum addresses regulatory and operational challenges associated with digital finance. The rise of digital payments, blockchain technology, and artificial intelligence in financial services has introduced new opportunities and risks that require careful oversight. The Forum works with regulators and industry stakeholders to develop policies that foster innovation while maintaining financial stability and consumer protection.

One of the most pressing topics in digital finance is the regulation of cryptocurrencies and stablecoins. With the increasing adoption of digital assets for payments and investment, policymakers have sought clearer regulatory frameworks to address concerns related to fraud, money laundering, and systemic risk. The Forum has participated in discussions on how financial institutions can integrate digital assets into their operations while ensuring compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. It also provides insights on the potential role of central bank digital currencies (CBDCs) in modernizing payment systems and enhancing financial inclusion.

Another area of focus is the use of artificial intelligence and machine learning in banking operations. Financial institutions are leveraging AI for fraud detection, credit risk assessment, and customer service automation, but these advancements raise questions about data privacy, algorithmic bias, and regulatory oversight. The Forum works with policymakers to establish guidelines that promote responsible AI adoption while safeguarding consumer interests. By contributing to discussions on ethical AI practices and regulatory compliance, it helps ensure that technological advancements enhance financial services without introducing unintended risks.