State Financial Regulators Name Fintech Innovation Contacts
To foster communication between regulators and industry regarding financial technology, regulators from all 50 states and the District of Columbia have designated an Innovation Staff Contact within their offices, the Conference of State Bank Supervisors (CSBS) announced today.
The Innovation Contact will be the primary contact for fintech officials, streamlining communication on money transmission, payments and lending. The full list can be found here.
John Ryan, CSBS president and CEO, said: “State regulators see how fintech is reshaping the financial services industry. And an Innovation Contact is but the latest step that states are taking to engage with industry and modernize nonbank regulation.”
Robin Wiessmann, Pennsylvania secretary of banking and securities, explained: “Innovation
Contacts will smooth the process for new fintechs navigating the licensing process and seeking feedback on business plans. Regulators will be better able to review business concepts, encourage positive aspects of change, and protect consumers.”
Collectively, state regulators oversee 79 percent of all U.S. banks and 23,000 nonbanks licensed at the state level. In 2017, state regulators, through CSBS, committed to moving towards an integrated, 50-state licensing and supervisory system for fintechs and other nonbanks. CSBS adopted CSBS Vision 2020 to reflect implementation initiatives, such as:
- A Fintech Industry Advisory Panel of 33 companies to identify pain points and recommend solutions
- A next generation technology platform, now in development, to streamline licensing and supervision
- State efforts to harmonize their licensing and supervisory practices
The Conference of State Bank Supervisors is the national organization of bank regulators from all 50 states, American Samoa, District of Columbia, Guam, Puerto Rico and U.S. Virgin Islands. State regulators supervise roughly three-quarters of all U.S. banks and a variety of non-depository financial services. CSBS, on behalf of state regulators, also operates the Nationwide Multistate Licensing System to license and register non-depository financial service providers in the mortgage, money services businesses, consumer finance and debt industries.