WASHINGTON—Ahead of a hearing on how regulatory agencies are using fintech to influence financial services, NAFCU and CUNA wrote to the House Financial Services Committee (HFSC) Subcommittee on Digital Assets, Financial Technology and Inclusion to outline areas where they see additional effort needed.
The trade groups said more can be done “to ensure credit unions have the tools and mechanisms to reach new consumers who are not currently being served.”
NAFCU and CUNA said the NCUA’s recent modernization of its field of membership rules and the agency’s Advancing Communities through Credit, Education, Stability and Support (ACCESS) Initiative are positive steps, but requested the committee look at ways to limit regulatory and legislative burden on credit unions and allow credit unions to use technology to serve the needs of those who have been underserved by other financial services providers.
Additional Concerns
The associations further said they are concerned “credit unions will be unnecessarily and unjustifiably obstructed in their ability to invest in appropriate technology and perform in the consumer finance sector, which is increasingly competitive and innovative.”
In addition, the associations expressed their disagreement with the NCUA board’s push for oversight authority over third-party vendors. They added that it may be appropriate, in limited circumstances, for the NCUA to have “to have authority over BSA-related service providers and cybersecurity service providers,” but requested that no legislation grant the agency authority to supervise all third-party vendors.
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