WASHINGTON—The U.S. Government Accountability Office (GAO), in a new report on financial technology, encouraged the NCUA and other financial regulators to collaborate more to ensure consumers are protected when using fintech and account aggregation services.
Some of the GAO's recommendations included regulators creating innovation offices to help new firms become familiar with regulatory expectations, and engaging in future, collaborative efforts with relevant financial regulators and stakeholders, NAFCU said.
NAFCU noted that it has discussed with the NCUA and Congress the role of fintech companies in today's financial marketplace. NAFCU President and CEO Dan Berger testified before a House panel last month and explained that any company that engages in core banking functions should be regulated the same way as credit unions.
The association has outlined three principles that it believes should guide regulators as they assess fintech participation in the financial marketplace, including:
- Data and cybersecurity concerns – fintech companies should be held to the same standards that apply to credit unions
- Fair competition – fintechs must compete with regulated financial institutions on a level playing field
- Consumer protection – fintechs should comply with the same consumer protections laws that apply to credit unions and banks
NAFCU emphasized that it continues to support a fair playing field, so credit unions have as many opportunities as banks and non-regulated entities as part of its 2018 priorities.