In a letter to the Consumer Financial Protection Bureau today, the American Bankers Association and three other trade groups offered their support for the bureau’s proposed changes to its 2016 no-action letter policy and its proposal to establish a “sandbox” where banks and nonbank fintech firms can test new products, services and delivery mechanisms.
“The proposed changes to the 2016 NAL policy and the sandbox demonstrate the bureau’s commitment to encouraging responsible, consumer-friendly innovation that will promote financial inclusion, expand access to credit, and improve consumer access to information—all of which should give consumers greater control over their financial future and well-being,” the groups said.
The associations urged the CFPB to align its final policy with the programs of other federal regulators, including the Securities and Exchange Commission and the Commodity Futures Trading Commission. To achieve that outcome, the groups urged stronger liability protections for companies that comply in good faith with the terms of a NAL or sandbox approval; proactive coordination with other regulators; confidentiality of data and information; and the amending of relevant regulations when program experience demonstrates it is warranted. For more information, contact ABA’s Virginia O’Neill.
