While CUNA supports financial technology innovation, it remains concerned about an environment in which consumers would not receive the same protections as they do at financial institutions. CUNA wrote to the House Financial Services subcommittee on financial institutions and consumer credit Thursday for its Friday hearing on “Examining Opportunities for Financial Markets in the Digital Era.”
“A regulatory scheme that ensures consumers receive the same protections and those offering these services are subject to similar regulations and supervision credit unions and banks is important to safeguard consumers and the banking system,” wrote CUNA President/CEO Jim Nussle.
Nussle highlighted how technology has enhanced financial institutions’ ability to delivery financial services to consumers, and that credit unions have embraced and developed this kind of technology.
“One example of this technology is the shared branch network that enables credit union members to obtain banking services at thousands of credit union branches that are not owned and operated by the credit union at which they are a member,” Nussle wrote. “To provide this service, credit unions developed technology that allowed credit unions’ computer systems to work together.”
“Nussle also noted that credit unions embrace technological innovation that can benefit consumers, and are partnering with fintech companies “to ensure that they continue to offer essential financial services in the most efficient and modern way possible.”