NACHA Government Relations Update - Nov. 10, 2016

Posted November 7, 2016

Government Relations Announces New Resources at NACHA.org
Government Relations has enhanced their web presence to better assist members with policy-related materials. The homepage is under NACHA and the ACH Network tab: https://www.nacha.org/content/government. Highlights include:

 
Comptroller Delivers Remarks Re: Finance Industry Innovation and Regulation
On Nov. 3, 2016, Comptroller of the Currency Thomas J. Curry addressed the Chatham House ‘City Series’ Conference with remarks regarding how the financial services landscape is evolving in response to FinTech and consumer expectations. During his appearance, he discussed OCC’s efforts to develop a framework for responsible innovation balanced with a prudent supervision structure. 
 
 
OCC Announces New Office of Innovation, Delays Decision on FinTech National Charter
On Oct. 26, 2016, The Office of the Comptroller of the Currency (OCC) announced it will establish an office dedicated to responsible innovation and implement a formal framework to improve the agency’s ability to identify, understand, and respond to financial innovation affecting the federal banking system. Beth Knickerbocker was named acting Chief Innovation Officer.
Not included in the framework was the establishment of a special purpose national bank charter to nonbank financial technology companies. A paper will be published on the topic later this year, including the opportunity for public comment.   
 
 
FTC Hosts Forum on Peer-to-Peer Payments
Last week, the Federal Trade Commission (FTC) hosted a forum on peer-to-peer payments. 

Moderators:

  • Duane Pozza, Assistant Director, Division of Financial Practices, FTC
  • Patrick Eagan-Van Meter, Financial Technology Program Specialist, Division of Financial Practices, FTC 

Panelists:

  • Jo Ann Barefoot, CEO, Jo Ann Barefoot Group, LLC
  • Matt Van Buskirk, Co-founder & CEO, Hummingbird Fintech
  • Beth Chun, Assistant Attorney General, Texas Office of the Attorney General
  • Brian Peters, Executive Director, Financial Innovation Now
  • Christina Tetreault, Staff Attorney, Consumers Union 

The forum focused on the potential benefits and uses of peer-to-peer payments, including for the underserved community. Fast access to cash and bill payment options could be particularly useful to underbanked consumers. Advances in security and technology were pointed to as a way to enhance consumer protection. These protections can be built into new systems and applications, including robust authentication.
 
There are concerns in the regulator community that as applications and new peer-to-peer payments systems come online, they will have different levels of consumer protection based on the underlying form of payment. This could create confusion to consumers. Proper disclosure and education are key to mitigation. In addition, there is concern about how the data that consumers are sharing with these services is being used.
 
Overall, there is promise for consumers in peer-to-peer payments, but familiar concerns over privacy and consumer protection will continue to dominate the conversation.
 
 
Upcoming Schedule in the House of Representatives
Members of the House are scheduled to return to Washington following the elections for the “lame duck” session on Nov. 14. New Members of Congress will be in town for orientation, as well as organizing events such as the GOP Leadership elections on Nov. 15. The 115th Congress will convene on Wed. Jan. 4, 2017 and at that time the Steering Committees will begin their work to place new Members on the various Committees with vacancies. 
 
 
Legislative Tool Kit
House 2016 Calendar (also in bottom right hand bar)
Senate 2016 Calendar (also in bottom right hand bar)​​
 
 

Access: Public