ALEXANDRIA, Va.––NCUA Chairman Rodney Hood has offered some additional insights into a new Office of Innovation being created by the agency.
Speaking to a webinar hosted by the World Council of Credit Unions, “An International Perspective on Financial Inclusion, Social Justice and Credit Union Regulatory Advocacy,” Hood said one of the reasons he has championed the idea of a new Office of Innovation and Access is financial technology, or fintech, is a particularly promising path toward addressing financial inclusion issues.
“If anything has come out of this pandemic it is that it has catalyzed the importance of the digital model,” said Hood. “We are looking at the tools we would need and who we should work with around the globe on such an office. We are having those conversations because we will be launching an innovation lab soon.”
Hood said he has spoken with other regulators about what the pitfalls of such a regulatory initiative are so that as the agency moves forward with an “innovation agenda” it can avoid some of the problems others have experienced.
Not Just a Buzzword
“I’m not looking to innovate because it’s the new buzzword; I’m looking at fintech innovation because it brings more access to underserved communities,” Hood said. “If you are not using innovation to drive inclusion and access, then you have to question why you are doing it.”
Hood said he has sought to lead using a principles-based approach to regulation and innovation, and one area he sees on the horizon where such an approach is ideal is in payments.
“We are looking at how we can work with fintech providers around payments,” Hood said. “I’m proud to say some credit unions are already working with a company and doing some testing. I am also very proud of the work the World Council has done in West Africa with a digital credit union, and we are looking at that as a model.”