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Berger, on Fox Business, calls for fair, level playing field with fintech banks
Ahead of NAFCU's congressional testimony tomorrow on the risks of fintech chartering, NAFCU President and CEO Dan Berger joined Fox Business Reporter Charlie Gasparino to discuss the issue on The Claman Countdown.
Gasparino asked Berger what NAFCU's message to Washington is.
"It's really simple, all we want is to make sure regulators create a fair and level playing field between fintechs and other financial institutions," Berger said. "We want to ensure that any new banking models are held to the same high standards as credit unions and banks."
Berger detailed how some fintech companies are taking advantage of regulatory loopholes "that escape the oversight of federal financial regulators" and do not clearly require certain fintech companies to follow the same capital requirements that apply to insured banks and credit unions. Berger said this situation is "bad news for consumers and taxpayers" and it can create systemic risk in the financial system.
Berger acknowledged that credit unions have partnered with technology companies for several years to improve the products and services available to their members.
With a new video, op-ed from Dan Berger, and issue brief outlining potential chartering schemes, NAFCU is fighting to ensure fintech banks operate on a level playing field with credit unions and urging policymakers to make necessary changes to combat the risks posed to the financial system by fintechs applying to become a bank or acquiring a bank. The association recently wrote to the CFPB, the Office of the Comptroller of the Currency (OCC), and the House Financial Services and Energy and Commerce Committees on this topic.
Learn more about NAFCU's position on fintech banks and what this issue means for credit unions on the association's dedicated issue advocacy page.