WASHINGTON—During a House Financial Services Committee Financial Technology Task Force hearing, several witnesses expressed concerns over the actions taken by the Office of the Comptroller of the Currency (OCC) in regard to fintech charters and the Federal Deposit Insurance Corporation in regard to industrial loan company (ILC) charters.
The witnesses suggested the actions of the OCC and FDIC further regulatory arbitrage, threaten the separation of banking and commerce, increase systemic risk, and pose a risk to consumers, NAFCU reported.
During the hearing lawmakers agreed fintech can spur innovation and financial inclusion, but were concerned about lack of regulatory oversight and potential compromises to consumers' data. Some discussion was also had on the need for Congress to act on data privacy legislation.