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Ahead of today's House Financial Services Committee’s Financial Technology (Fintech) Task Force hearing, NAFCU Vice President of Legislative Affairs Brad Thaler reiterated the association's call for competitive equality between traditional financial institutions and fintech companies.

Today's hearing, set to begin at 12 p.m. Eastern today, will specifically examine the legal framework governing who can lend and process fintech payments.

In the letter sent Monday, Thaler noted industrial loan company (ILC) charters and the Office of the Comptroller of the Currency’s (OCC) payment charter “frustrate the goal of establishing a level playing field by permitting recipients of either license to reduce the extent of federal supervision compared to traditional financial institutions.”

“NAFCU believes that regulators should not give preference to fintech as a new model of banking ready to replace traditional institutions, but rather seek to modernize traditional supervisory frameworks to ensure that the promise of better, more efficient service and expanded access to credit is predicated on responsible innovation rather than regulatory arbitrage,” wrote Thaler.

In addition, Thaler called for a full and transparent rulemaking process to allow for careful consideration of how recipients of fintech-specific charters might impact the safety and soundness of the financial sector, should regulators seek to introduce specialized chartering options.

NAFCU remains committed to ensuring a level playing field for credit unions and continues to monitor the financial services landscape for potential changes that could impact the industry. The association recently shared its concerns related to ILC and fintech chartering with the FDIC and OCC.

The association also has also published whitepapers on fintech and data privacy, seeking to empower credit unions with the tools to better serve their communities, while ensuring proper congressional and regulatory oversight.