‘Untapped Potential’ for CU Innovation: NAFCU Asks NCUA’s OFTA for More Transparency

On Thursday, NAFCU Senior Regulatory Affairs Counsel James Akin, sent a three-page letter to the Director of the NCUA’s Office of Financial Technology and Access (OFTA), Charles Vice, in an attempt to open discussions with the office to not only assist credit unions with innovation strategies, but to remove information-sharing hurdles between the agency and the industry.

Akin wrote, “As the financial landscape continues to evolve, it is crucial for credit unions to be agile and innovative, ensuring that they can adequately cater to the needs of a diverse array of consumers and remain competitive. In this respect, OFTA can act as a forum for technological solutions that promise enhanced accessibility and inclusivity, especially for underserved populations. NAFCU believes that these efforts can usher in a future where fintech solutions bridge existing gaps in access to financial services, ensuring that every individual has equitable opportunities for financial well-being with the help of their community financial institution.”

In January of this year, the NCUA hired Vice to become director of financial technology and access. According to the NCUA, it’s a position that will focus on the agency’s efforts to create fintech policies, including cryptocurrency, blockchain and distributed ledger technology initiatives for the credit union industry.

Akin believes “there may be an untapped potential for furthering innovation within the credit union space” with the help of the OFTA. “NAFCU requests that the OFTA offer greater transparency regarding its current and future initiatives and do more to foster a proactive environment wherein credit unions can experiment, learn, and innovate,” wrote Akin.

While NAFCU officials met with Vice in February, Akin would like direct engagement between OFTA, trade associations like NAFCU and credit unions. Akin said this openness “will result in information sharing and allow hurdles to be identified and remediated, to the benefit of all parties. This can be accomplished through roundtables, forums, and similar venues. In this spirit of collaboration, NAFCU also requests a meeting with you and your office at your earliest convenience to discuss shared priorities and areas for future partnership. Our shared objective to empower and innovate can be greatly augmented with a synergistic approach, and we believe a meeting would set the stage for just that.”

READ MORE: NAFCU’s letter to OFTA.