WASHINGTON—The CFPB has announced its first-ever “tech sprints,” which it said are designed to reduce financial institutions' regulatory burden and improve consumer understanding of financial services. The tech sprints were first proposed in 2019, as CUToday.info reported here.
Recently, the FDIC has also announced a similar initiative, in this case with a goal of replacing its Call Report system.
The agency proposed techs sprints through a request for information last year as a means to identify new technologies and approaches that can be used to provide more cost-effective oversight of supervised entities.
How it Works
According to the Bureau, each tech sprint involves small teams of regulators, technologists, financial institutions, and subject matter experts working together to develop solutions to clearly identified problems in a collaborative environment.
“The Bureau’s Tech Sprints program offers an opportunity for financial companies, technology experts, programmers, consumer groups, and regulators to collaborate and find innovative ways to address common challenges that will result in better regulatory compliance and help consumers to make better, more informed financial decisions,” said CFPB Director Kathy Kraninger in a statement. “I am excited that the CFPB is leading in government innovation by launching these Tech Sprints.”
First Up on Agenda
The first tech sprints will be held at the Bureau's headquarters and examine:
- Electronic disclosures (Oct. 5-9): Participants will develop and test innovative approaches to electronic delivery of adverse action notices required under the Equal Credit Opportunity Act and the Fair Credit Reporting Act.
- Home Mortgage Disclosure Act (HMDA) (March 22-26, 2021): Participants will innovate in HMDA data submissions, processing, and publication through new platform tools and technologies.