Berger talks fintech with lawmakers
NAFCU President and CEO Dan Berger discussed the role of fintech companies in today's financial marketplace and explained why any company that engages in core banking functions should be regulated the same way as credit unions on a panel yesterday before Democratic members of the House Financial Services Committee.
Also on the panel were the CEOs of the American Bankers Association and Independent Community Bankers of America.
NAFCU agrees that fintech produces real benefits to consumers, including increased speed, convenience and new product offerings that make it easier for them to manage their financial lives. Fintech also offers the possibility of bringing banking and financial products to underserved communities and the underbanked. However, flexibility within a regulatory regime must be tempered with concern for overall sector stability and competitive equality.
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; and
- consumer protection – fintechs should comply with the same consumer protections laws that apply to credit unions and banks.
NAFCU 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.
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