WASHINGTON—Sharing concerns over the growing role that fintechs play in the financial services market and their associated risks, NAFCU has sent a letter to the House Small Business Subcommittee on Oversight, Investigations, and Regulations prior to its hearing on Fintech and Transparency in Small Business Lending.
NAFCU Vice President of Legislative Affairs Brad Thaler said in the letter there are a plethora of “new opportunities” that the growth of fintechs in recent years has offered for the delivery of financial services. However, he warned that fintechs “…can also present new threats and challenges as novel entities emerge in an underregulated environment.”
‘Level Playing Field’
“As such, NAFCU believes that Congress and regulators must ensure that when technology firms and fintechs compete with regulated financial institutions, they do so on a level playing field where smart regulations and consumer protections apply to all participants,” continued Thaler.
In the letter Thaler referenced NAFCU’s white paper that proposes regulatory recommendations for oversight over fintech companies in the financial services industry.
“Credit unions look forward to continuing to experience growth in the technology space as a way to better serve our members, including small businesses,” concluded Thaler. “However, as technology companies expand, and new charters emerge to compete in the financial services marketplace, it is important that they compete on a level playing field of regulation and supervision – whether lending to consumers or small businesses.”
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