WASHINGTON—Concerns related to data privacy, security and fintechs were raised in a letter sent by NAFCU ahead of a House Financial Services Committee’s task force hearing on financial technology.
The hearing focus on preserving the right of consumers to access personal financial data.
NAFCU's Brad Thaler wrote to the task force outlining the association’s concerns about data privacy and security issues with fintechs, including error dispute resolutions under Regulation E. Thaler also outlined the association's series of data privacy principles and urged they be reflected in any legislative proposals as Congress continues to work to achieve a path forward on consumer rights and the collection of financial data.
NAFCU said its six data privacy principles call for a comprehensive federal data privacy standard that protects consumers, harmonizes existing federal data privacy laws, and preempts state privacy laws.
Input on AI
In addition, NAFCU noted it has advocated for the integration and leveraging of financial technologies to benefit credit unions. The association recently wrote to the NCUA and other regulators regarding an interagency request for information on AI.
Moreover, NAFCU used the letter to remind it has provided recommendations to the CFPB regarding its Section 1033 advance notice of proposed rulemaking on consumer access to financial data as required by the Dodd-Frank Act, noting that frameworks for promoting data portability should favor permissioned arrangements between third parties and financial institutions to better protect consumer data.