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NAFCU to House Small Biz: ‘Level the playing field for all’ regarding fintech oversight
NAFCU Vice President of Legislative Affairs Brad Thaler wrote a letter Tuesday to the House Small Business Subcommittee on Oversight, Investigations, and Regulations prior to its hearing today on “Fintech and Transparency in Small Business Lending.” In the letter, Thaler asks that the subcommittee to examine the growing role that fintechs play in the financial services market and their associated risks.
Thaler highlights in the letter the plethora of “new opportunities” that the growth of fintechs in recent years has offered for the delivery of financial services. However, he warns that fintechs “…can also present new threats and challenges as novel entities emerge in an underregulated environment.”
“As such, NAFCU believes that Congress and regulators must ensure that when technology firms and fintechs compete with regulated financial institutions, they do so on a level playing field where smart regulations and consumer protections apply to all participants,” continued Thaler.
He referenced NAFCU’s white paper that proposes regulatory recommendations for oversight over fintech companies in the financial services industry.
“Credit unions look forward to continuing to experience growth in the technology space as a way to better serve our members, including small businesses,” concluded Thaler. “However, as technology companies expand, and new charters emerge to compete in the financial services marketplace, it is important that they compete on a level playing field of regulation and supervision – whether lending to consumers or small businesses.”
Read the full letter. NAFCU will continue to ensure that Congress modernizes legislations to help protect consumers whilst keeping up with technological developments.