WASHINGTON—NAFCU has sent letters to Congress related to separate hearings on cloud computing and diversity and inclusion.
Ahead of a House Financial Services Task Force on Artificial Intelligence hearing to evaluate cloud computing – including how financial data is stored, protected, and maintained – NAFCU Vice President of Legislative Affairs Brad Thaler reiterated the trade association’s support for strong cybersecurity measures and renewed its call for a legislative solution to reform the nation's data security system.
"While depository institutions have a national standard on data security since the passage of the Gramm-Leach-Bliley Act (GLBA) over two decades ago, other entities who handle consumer financial data do not have such a national standard," wrote Thaler. "In addition, we also believe that there is a need for a uniform national consumer data privacy standard as opposed to a patchwork of standards stemming from different state data privacy laws."
Speaking to the discussion draft bill – the Strengthening Cybersecurity for the Financial Sector Act – which would expand the NCUA's oversight authority over vendors who serve credit unions, Thaler said, "NAFCU is opposed to granting additional authority to the NCUA to examine third parties. NAFCU believes in a strong NCUA, but that the NCUA should stay focused on regulating credit unions. We believe in reducing regulatory burden by coordinating efforts among the financial regulators."
Diversity and Inclusion
Separately, Thaler also sent a letter to the House Financial Services subcommittee prior to a hearing on the economic benefits communities, businesses, and individuals experience when diversity and inclusion practices are prioritized. Thaler shared with lawmakers credit unions' commitment to increase diversity, equity, and inclusion within the U.S. economy.
"NAFCU, and the credit union industry as a whole, have long been supportive of [diversity, equity, and inclusion] initiatives," wrote Thaler. "…529 federally-insured credit unions are minority depository institutions, located in 37 states, Washington, D.C., Puerto Rico, and the U.S. Virgin Islands. When it comes to leadership, more than half of credit union chief executive officers (CEOs) are women, and 164 credit union CEOs are African Americans."
Both CUNA and NAFCU have touted the differences between credit unions and banks, stating there are currently three times as many minority-designated credit unions as banks, and there are 10 times as many female CEOs at credit unions than at banks, NAFCU said.