WASHINGTON—The CFPB has published a request for information (RFI) seeking input on how it can use "Tech Sprints" to "encourage regulatory innovation and collaborate with stakeholders in developing viable solutions to regulatory compliance challenges."
The Bureau notes in the RFI its "statutory responsibility to regularly identify and address outdated, unnecessary or unduly burdensome regulations in order to reduce unwarranted regulatory burdens," and the role technology plays in improving compliance and supervision.
The RFI also includes background information of other departments and regulators that have successfully used the so-called Tech Sprints as a model for collaborative innovation. The sprints bring together regulators, technologists, financial institutions, and subject matter experts to work through problems and find innovative solutions, NAFCU explained.
CFPB’s Objectives
Through its potential use of Tech Sprints, the Bureau said it would like to:
- Leverage cloud solutions, machine automated compliance checks that allow for independent validation by regulators, and other developments that may reduce or modify the need for regulated entities to transfer data to the CFPB
- Continue to innovate Home Mortgage Disclosure Act (HMDA) data submission, processing, and publication to help ease burden, increase flexibility, and resolve compliance challenges
- Identify new technologies and approaches that can be used by the bureau to provide more cost-effective oversight of supervised entities
- Explore other technological approaches to robust and secure data access or exchange
- Reduce unwarranted regulatory compliance burdens
Also in RFI
The RFI outlines a number of questions the Bureau would like specific feedback on from stakeholders. Comments are due to the Bureau Nov. 8.
NAFCU recently released a whitepaper that charts a path forward for regulatory coordination in order to achieve an even playing field between traditional financial institutions and fintech companies. The whitepaper addresses ways the CFPB is already regulating these types of innovation and how it can improve its approach.