Today, NAFCU-witness Carlos Pacheco will testify before a House Financial Services subcommittee to share credit unions’ recommendations for a fair and level playing field with fintech companies. NAFCU is leading efforts to alert policymakers and consumers to the growing issue of financial technology companies applying to become a bank or acquiring a bank. Pacheco, CEO of Premier Members Credit Union (Boulder, Colo.), is the only financial institution representative testifying today.
During his testimony, Pacheco is set to highlight the credit union difference as the industry is committed to providing their 124 million members with efficient, low-cost, personal financial services and to promoting traditional cooperative values such as democracy and volunteerism.
Pacheco will detail the risks of under-regulated entities entering the market and stress the need for these entities to have federal financial regulator oversight to ensure safety and soundness and consumer protections. He will also reiterate NAFCU’s call for legislative and regulatory changes, including those specifically related to Industrial Loan Companies (ILCs), special purpose fintech charters, payments charters, and national trust banks, to combat the risks and ensure a level playing field with traditional financial institutions.
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