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As the Treasury Department prepares its report covering technology and innovation influencing financial institutions, NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt wrote the department recommending ways in which it can ensure fintechs are subject to the same policies and supervisions as credit unions.

The Treasury Department has released three of four reports stemming from a presidential executive order, "Core Principles for Regulating the United States Financial System." Its fourth report will focus on nonbank financial institutions and financial technology and innovation.

In her letter sent Thursday to Treasury Counselor Craig Phillips, Hunt noted that fintech companies have expanded their offerings and become more involved in core banking functions.

"NAFCU believes that while there is merit to a flexible regulatory regime for companies offering innovative services and products, flexibility must be tempered with concern for overall sector stability and competitive equality," Hunt wrote. "Fintech companies may unlock unprecedented growth but may also represent unprecedented risks."

Hunt highlighted ways regulators are working to supervise and better understand fintech activity by exploring special purpose national bank charters, CFPB oversight on how fintechs use consumer data and possible changes to CFPB's enforcement activity as it relates to the credit process.

Hunt also outlined three principles NAFCU recommends the Treasury consider as it reviews fintech companies' participation in the financial marketplace: data security, fair competition and consumer protection.