WASHINGTON—Testifying on behalf of NAFCU, Carlos Pacheco told a House Financial Services subcommittee the nation’s credit unions have a number of recommendations for a fair and level playing field with fintech companies.
As CUToday.info has reported, both credit union trade associations have been raising concerns around fintechs, especially as some have applied for bank charters or sought to purchase banks.
Pacheco, CEO of Premier Members Credit Union in Boulder, Colo., was the only financial institution representative who testified.
During his testimony, Pacheco detailed what credit unions believe to be the risks of under-regulated entities entering the market and stressed the need for these entities to have federal financial regulatory oversight to ensure safety and soundness and consumer protections.
He also reiterated NAFCU's call for legislative and regulatory changes, including those specifically related to Industrial Loan Companies, special purpose fintech charters, payments charters, and national trust banks, to combat the risks and ensure a level playing field with traditional financial institutions.