WASHINGTON--The NCUA supports reasonable tech adoption for credit unions and is strengthening its own supervisory approach by integrating fintech expertise into examinations.
Addressing this in testimony Thursday, NCUA Acting Director of the Office of Examination and Insurance Amanda Parkhill detailed how the agency is actively working to use and regulate new technologies during a House Financial Services subcommittee hearing to examine how regulators are keeping pace with technology.
The testimony also detailed how credit unions are actively adopting advanced technologies—such as AI for lending, fraud detection, and member services.
In advance of the hearing, America’s Credit Unions urged committee members to consider how regulators keeping pace with innovation impacts credit unions of all sizes and the members they serve.
The subcommittee also discussed the “Financial Services Innovation Act of 2026,” draft legislation to establish a financial services innovation office to facilitate the approval of compliance agreements and other no-action-type requests.
America’s Credit Unions said it supports the bill and other provisions to “spur the creation of regulatory sandboxes, where participants can obtain advance assurance that enforcement action will not be taken against a product or service that meets minimum supervisory expectations.”