NAFCU offers Federal Reserve recommendations on account, payment service access

NAFCU Senior Counsel for Research and Policy Andrew Morris Monday wrote to the Federal Reserve to offer the association’s concerns and recommendations regarding a set of proposed guidelines the Federal Reserve Banks will use when evaluating requests for accounts and payments services.

In the letter, Morris underscored the importance of the Federal Reserve adopting a uniform and transparent framework for evaluating request for access to the Federal Reserve payment system. Morris also urged the Federal Reserve to ensure that non-federally-insured institutions meet the same safety and soundness standards applicable to insured institutions.

NAFCU has raised concerns about Fed access for fintech companies as they could pose risks to the financial system and offered support for the proposed principles that recognize the unique risks posed by fintechs and other nontraditional entities.

Morris also suggested the Federal Reserve Board should exercise heightened due diligence when evaluating requests from non-depository institutions engaged in novel financial activities.

 

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