Products and services from fintech companies should offer the same consumer protections as those offered by regulated entities, CUNA told a House subcommittee Tuesday. In a letter to the House Financial Services subcommittee on financial institutions and consumer credit, CUNA expresses concerns that a lack of regulation could lead to an unequal playing field of credit unions.
“Credit unions welcome innovation as innovation has led to credit unions offering new products and services to members,” wrote CUNA President/CEO Jim Nussle. “Nonetheless, we remain concerned that the playing field does not always remain level. Credit unions and other financial institutions are heavily regulated for safety and soundness and consumer protections. This is not always the case for other companies offering financial products.”
Nussle noted that consumers benefit from innovation in the marketplace, but said it needs to balance consumer safety.
“Credit unions want to ensure that financial products and services available from fintech companies or any company offer the same protections as those offered by regulated entities,” he wrote. “Our members do not want to discourage innovation, they just want to ensure that innovation does not allow new entrants to make an end run around regulation.”