Ahead of today’s House Financial Services subcommittee hearing on modernizing financial services through innovation and competition, NAFCU Senior Vice President of Government Affairs Greg Mesack outlined several considerations to limit regulatory burdens on credit unions and support a level playing field.
“Consumers today come to expect technological developments from their financial institution—from online banking to mobile bill pay,” Mesack wrote. “Many credit unions embrace innovations in technology to improve relationships with members and offer more convenient and faster access to financial products and services.
“As we have previously cautioned, the growth of fintech can also present new threats and challenges as novel entities emerge in an underregulated environment,” he added.
Mesack wrote in general support of draft legislation, Financial Services Innovation Act of 2023, that would “create a petition process for regulatory flexibility for innovation,” but outlined some asks to strengthen the legislation:
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