America’s Credit Unions and the National Association of Credit Union Service Organizations (NACUSO) wrote to the NCUA Friday to request the agency amend its regulations to provide additional flexibility “to engage with and invest in innovative technology solutions and fintech companies.”
The associations noted that providing this flexibility is permitted by the Federal Credit Union Act and falls in line with states that “have considered and adopted changes to their rules to permit greater investment in companies that serve credit unions and their members aside from CUSOs.” They pointed to Washington and Illinois as states that provided additional flexibility for credit unions to invest in fintechs.
The groups recommended certain limitations the NCUA may wish to consider adopting to ensure the safety and soundness of the credit union industry but urged the NCUA not to “be overly restrictive so as to stifle meaningful engagement with new fintechs and technologies.”
America’s Credit Unions will continue to engage the NCUA to modernize regulations and provide regulatory relief and flexibility.
