How would 'tech sprints' benefit reg oversight?
NAFCU is seeking comment from members regarding "tech sprints," which the CFPB has proposed using to encourage innovation and address regulatory compliance challenges. A tech sprint involves small teams of regulators, technologists, financial institutions, and subject matter experts working together to develop solutions to clearly identified problems in a collaborative environment.
Credit unions can submit comments to NAFCU through its Regulatory Alert until Oct. 24; comments are due to the CFPB Nov. 8.
NAFCU notes in its Regulatory Alert that the CFPB intends to explore greater automation of compliance checks to reduce or modify the need for regulated entities to report data, and noted specifically is the Home Mortgage Disclosure Act (HMDA) data submission process. The CFPB views tech sprints as a means to identify new technologies and approaches that can be used to provide more cost-effective oversight of supervised entities.
Credit unions are asked for their feedback on:
- What compliance functions would benefit from the adoption of new, supervisory technology or automated processes?
- What technologies or approaches should be used to provide more cost-effective oversight of supervised entities?
- Are tech sprints an effective vehicle for promoting more efficient and less burdensome approaches to regulatory supervision?
NAFCU's Regulatory Alert includes access to the CFPB's request for information on the tech sprints proposal, as well as additional details on how credit unions could be impacted by it.