Fintech regulations should distinguish between regulated, unregulated entries

The emergence of fintechs presents opportunities, threats, and challenges to financial institutions. In advance of a House Financial Services subcommittee hearing today on fintech partnerships, America’s Credit Unions provided a list of recommendations to ensure credit unions are considered in any fintech policy.

The letter notes:

• Congress and regulators must ensure that when fintechs companies compete with regulated financial institutions, they must do so on a level playing field where smart regulations and consumer protections apply to all actors in that space; 
• A stringent stance from regulators on fintech or artificial intelligence (AI) usage in the financial sector could disproportionately harm credit unions and smaller institutions while benefiting the largest incumbents; and 
• Financial sector regulators should tailor future actions related to AI in a way that distinguishes between the use of AI technology by regulated versus unregulated institutions.

The hearing is scheduled for 10 a.m. Eastern and will be streamed live.

Read the full letter