Skip to main content

level the playing field between unregulated fintechs and credit unions.

WASHINGTON–With both credit union trade groups pressing Congress to bring fintechs under the same regulatory umbrella as other financial institutions, one of the key questions to be asking is what happens when things go wrong, according to NAFCU.

Credit union trade groups have called on Congress to ensure a “level playing field” between unregulated fintechs and credit unions. A number of fintechs have in the last year seen strong user growth into the millions of customers. Congress held a hearing on the issue last week.

“What we saw from the hearing is there are still a lot of questions,” said NAFCU EVP and General Counsel Carrie Hunt. “We are going to see more hearings on this issue. I think, ultimately, there is going to be a lot of disagreement as to what that regulation should look like. There is agreement that traditional financial providers can find value in partners, including fintechs, which can innovate quickly. It’s when they go one step further that begs the question around safety and soundness. We think credit unions provide the best option for consumers cradle to grave. These apps to move cash around quickly have a very finite purpose. The consumer really likes them until there is a problem, such as fraud, and then they end up going back to their credit unions. This is about a fair playing field.”

Regulatory Rollbacks’

Separately, the Biden Administration continues to roll back a number of Trump Administration rules and regulations, most recently around fair housing

Hunt said NAFCU is watching the moves being made by the Biden Administration, as it strongly supports a “deregulatory agenda.”

“If there is re-regulation, we want it to be necessary regulation,” said Hunt. “That’s how we view these rollbacks. We strongly support fair housing. Generally, it’s not the intent of regulation we have an issue with, its regulatory burden and whether it’s necessary to achieve those goals. Generally, there are other ways to achieve those goals.”

Comments

Popular posts from this blog

What Does PTSD in a Firefighter Look Like? A New Brain Scan Can Show You

Link Post-traumatic stress disorder (PTSD) is often described as one of the invisible scars that firefighters and others accumulate after years of dealing with trauma in their jobs. Now the scars are invisible no longer. A new tool—the SPECT scan—is offering a new way for firefighters and others with PTSD to visualize their injuries. SPECT stands for single photon emission computed tomography, and it creates 3-D scans of the patient’s brain that look at blood flow and brain activity, KTLA reports. Those scans can then be used to generate a treatment plan tailored to the specific patient based on the visual effects of PTSD. Retired Firefighter-Paramedic Matthew Fiorenza, a PTSD sufferer, told the station that the scans also help make the illness more tangible. “Looking at a picture of my brain, it just took the stigma out of it,” he told KTLA. “It’s like, okay, I’m not crazy.”  

The Pros and Cons of Tariffs

Since there has been so much discussion on Tariffs, I felt a post would benefit our membership. Grant Sheehan CEO NCOFCU Tariffs 1440 Business & Finance Background A tariff—a word derived from the Arabic arafa, meaning “to make known”— is a tax imposed by a government on goods that are imported or exported . Historically, tariffs have served as a primary source of revenue and a means to protect domestic industries, as they make foreign products more expensive, encouraging consumers to purchase locally produced goods. The tools have a checkered history, famously bolstering US textiles, German steel, Japanese cars, South Korean technology, and more, arguably contributing to major economic downturns like the Great Depression. Tariffs can be specific (a fixed fee per unit) or ad valorem (a percentage of the item's value). Purpose Economically, tariffs aim to protect domestic industries, generate government revenue, and influence trade policy. By imposing taxes on imported goods —wh...

Advice On Winning Over Gen Z In ’25

NEW YORK—As 2025 approaches the close of Q1, how can credit unions win over Gen Z? By tailoring credit rewards for a digital-first generation, a new report recommends. Gen Z is reshaping the workforce and redefining financial behaviors. As of 2024, this generation is poised to surpass Baby Boomers in workforce size and will make up 30% of the workforce by 2030. This rapid growth presents a major opportunity for financial institutions to tap into a younger, digitally native audience with distinct spending habits and financial needs, emphasized a GlobalData report authored by Zachary Johnson, specialist, campaign execution & strategy, financial services at VDX.tv. “Unlike previous generations, Gen Z’s economic journey has been shaped by inflation and delayed career starts due to the pandemic and skyrocketing living costs. These factors have made them highly dependent on credit, with Gen Zers being 23% more likely to own a credit card than Millennials at the same age, and carrying...

Hauptman Announces Changes to NCUA’s Overdraft/NSF Fee Collection

      Hauptman Announces Changes to NCUA’s Overdraft/NSF Fee Collection WASHINGTON, D.C. (March 3, 2025) – To help ensure credit unions can continue to support the needs of Americans struggling with inflation, the National Credit Union Administration will no longer publish overdraft and non-sufficient fund fee income for individual credit unions, Chairman Kyle S. Hauptman announced today. The NCUA will ...

Share Insurance Fund Report Highlights Asset, Income Growth in Q4 2024

      Share Insurance Fund Report Highlights Asset, Income Growth in Q4 2024 ALEXANDRIA, Va. (Feb. 27, 2025) – The National Credit Union Administration Board held its second open meeting of 2025 and received a briefing by the Chief Financial Officer on the performance of the National Credit Union Share Insurance Fund for the quarter ending on December 31, 2024. The Share Insurance Fund reported a net income of ...