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NAFCU on Friday urged the Office of the Comptroller of the Currency to hold fintech companies to a level of regulation and supervision that ensures fair competition with credit unions and others.

The OCC last month released a paper exploring special-purpose national bank charters for fintech companies. NAFCU Regulatory Affairs Counsel Andrew Morris, in a comment letter, supported the concept and encouraged the OCC to maintain a level playing field for financial institutions.

"Innovation in financial services and technology contributes to the growth of the entire financial sector. However, NAFCU believes that fintech companies require a minimum level of regulation and supervision to ensure fair competition and consumer protection," Morris wrote.

"NAFCU also believes that chartered fintech companies should be held to the same consumer protection laws as chartered banks and credit unions," he continued.

Morris emphasized that the OCC must ensure that consumers are not getting a "bad bargain" due to fintech companies being allowed to grow without being restrained by regulation or consumer protection laws.

He added that fintech companies should be held to heightened cybersecurity standards because of the increased risks associated with handling and processing large amounts of financial data online. He specifically recommended using the Federal Financial Institutions Examination Council's cybersecurity assessment tool (CAT) as a means of ensuring that fintech companies can demonstrate high levels of cybersecurity maturity.