Financial regulators highlighted innovative, “fintech friendly” features of state regulation in remarks at the annual conference of the Nationwide Multistate Licensing System, according to a news release by the Conference of State Bank Supervisors.
“We have embraced what we call ‘reg-tech’ to take state regulation to the next level,” Charles G. Cooper, chairman of the Conference of State Bank Supervisors and commissioner of the Texas Department of Banking, said in the release. “It is a system that has made the licensing process more efficient, including for those operating on a national basis, all while ensuring transparency to the consumer. Because of NMLS, there is a robust, vibrant regulatory system for non-depository companies operating in the United States.”
John Ducrest, commissioner of the Louisiana Office of Financial Institutions, said in the release the NMLS provides “a regulatory platform to get innovators up and running.” Ducrest noted that “financial technology is affecting so many business and policy decisions,” and “only by working together will we find the right answers.”
“We recognize that fintech has the potential to deliver financial services more easily and perhaps more broadly,” he added in the release. “But we also recognize that business innovations must protect consumers and the safety and soundness of the financial system.”
Ducrest explained in the release how state regulators balance these goals by crafting regulatory regimes that:
• Focus on business activities, not technology alone;
• Support businesses of all shapes and sizes;
• Ensure local accountability to small business and consumers;
• Adhere to regulatory evolution, not revolution; and
• Encourage collaboration with other regulators to learn new approaches.
To read the full CSBS release, click here.