The Conference of State Bank Supervisors (CSBS) announced last week that it has agreed to implement 14 recommendations made by its Fintech Industry Advisory Panel (Advisory Panel).
The Advisory Panel was formed in 2017 to identify actionable steps for improving state licensing, regulation, and non-depository supervision and for supporting innovation in financial services. It has 33 fintech company members that engage with the CSBS Emerging Payments and Innovation Task Force and other state regulators. The Advisory Panel has a subgroup focused on lending and another focused on payments. Both subgroups submitted reports that formed the basis of the recommendations CSBS has agreed to implement.
Those recommendations primarily address creating uniform definitions and practices, increasing transparency, and expanding the use of common technology among all state regulators.
Developing a 50-state model law to license money services businesses
Creating a standardized call report for consumer finance businesses
Building an online database of state licensing and fintech guidance, while encouraging a common standard
Developing a new technology offering, a State Examination System, to simplify examinations of nonbanks operating in more than one state
Expanding the use of the Nationwide Multistate Licensing System (NMLS) among all state regulators and to all nonbank industries supervised at the state level