CBA Discusses Fintech Policy with Treasury

On Thursday, February 22, 2018, CBA met with Treasury staff to discuss their upcoming report on nonbank financial companies. This report is part of the Treasury’s effort to implement the President’s Executive Order on Core Principles for Regulating the U.S. Financial System. Treasury stated the report would cover consumer lending, servicing, payment and settlements, wealth management, and data aggregation. During this meeting, CBA stressed the need to apply the full suite of banking rules, regulations and standards to all banks, including fintechs that acquire a bank charter. CBA also stressed the need for a risk-based vendor management system in order to scale compliance requirements with the actual risk posed by a bank’s vendor relationship. Lastly, CBA suggested the need for uniform data security and privacy rules for nonbank companies that handle consumer financial data.