Fed Vice Chair Bowman touts work to improve innovation, combat fraud

Key credit union priorities are shared by the Federal Reserve–including improving access to financial services for all Americans, addressing fraud, and bringing both consumers and small businesses safe, fair, and responsive financial services.  

Vice Chair of Supervision Michelle Bowman, who was confirmed by the Senate in June, opened the Federal Reserve Board’s second annual Financial Inclusion Conference Tuesday. She discussed a continued focus on innovation and a desire to understand how the Fed’s supervisory and regulatory framework affects a financial institution’s ability to provide affordable financial services that are consistent with safety and soundness.

“We know that financial institutions, both small and large, are working to build innovative approaches to meet their customers' needs while maintaining the safety and soundness of the banking system,” said Bowman.

“America’s Credit Unions shares Vice Chair for Supervision Bowman’s confidence in the strength of the U.S. financial system. We believe now is the time to build on that foundation by expanding access to safe, fair, and affordable financial services," said America's Credit Unions President/CEO Jim Nussle. "For more than a century, credit unions have led the way in serving those traditionally left out of the financial mainstream. But as our members know, outdated or overly burdensome regulations can block progress. We welcome the opportunity to partner with the Federal Reserve to modernize the regulatory framework to better support innovation, strengthen communities, and take decisive action to combat fraud.”

During her remarks, Bowman also noted that the Federal Reserve, along with other financial services regulators, published a request for information (RFI) on check and payments fraud to “help address the impact of this growing problem,” and stressed her commitment to working with a wide range of state and federal partners to address this issue—a top priority for America’s Credit Unions.

America’s Credit Unions will file detailed comments in response to the RFI, and continues to support efforts to address fraud on multiple fronts, including bipartisan Senate legislation to create a payments scam task force (which would include an NCUA and credit union representative). Credit unions can access a detailed breakdown of the RFI and submit feedback to help inform America’s Credit Unions’ comment letter in a recent Regulatory Comment alert.