Removing Barriers Blog

Deadline Approaching: Comment Call for CFPB Tech Sprints RFI
Posted October 29, 2019 by CUNA Advocacy

The CFPB is tasked with facilitating innovation in the consumer financial services market as part of its statutory mission. In fulfilling this objective, the Bureau has sought to strengthen its collaboration with stakeholders in order to develop solutions to shared problems.

The Bureau is currently exploring the use of Tech Sprints as a model for collaborative innovation. Tech Sprints gather regulators, technologists, financial institutions, and subject matter experts from key stakeholders for several days to work together to develop innovative solutions to clearly-identified challenges. These initiatives have been used by the Financial Conduct Authority (FCA) in the United Kingdom and several U.S. regulators, including the Census Bureau and Department of Health and Human Services. 

The CFPB's RFI seeks ideas on how it can use Tech Sprints to advance regulatory innovation and compliance. Specifically, the Bureau is interested in using Tech Sprints:

  • To leverage cloud solutions, machine automated compliance checks that allow for independent validation by regulators, and other developments that may reduce or modify the need for regulated entities to transfer data to the Bureau.
  • To continue to innovate HMDA data submission, processing, and publication to help ease burden, increase flexibility, and resolve compliance challenges, while satisfying all legal requirements.
  • To identify new technologies and approaches that can be used by the Bureau to provide more cost-effective oversight of supervised entities, effective evaluation of compliance and risk, and closer interface with financial industry systems and technology that may include the use, for example, of analytical tools in the review of mortgage origination data.
  • To explore other technological approaches to robust and secure data access or exchange between regulated entities and the Bureau.
  • To reduce unwarranted regulatory compliance burdens.
  • The information provided will help the Bureau identify how stakeholders can work together to create a regulatory environment (1) which allows innovation to flourish, is flexible, efficient and effective; (2) where new and/or emerging risks can be identified and managed effectively; and (3) where consumers have the appropriate level of protection and suitable access to the benefits of technological advancement. The Bureau is seeking to collaborate with stakeholders in developing solutions to regulatory compliance challenges, and is not seeking to endorse a particular product or service.

CFPB comment deadline: November 8, 2019

View submission options via the Federal Register's webpage!

 

Questions to Consider: 

  • What regulatory compliance issues, problems, procedures, or requirements could benefit from innovation through a Bureau Tech Sprint?
  • What financial technology or other advances hold the most promise for helping modernize regulatory compliance?
  • What other suggestions do you have for how the Bureau could plan, organize, and conduct a Tech Sprint, including its participants, duration, and location?
  • Other than organizing Tech Sprints, what else might the Bureau do to encourage innovation in financial products and services? For example, could advances be encouraged by changes to certain Bureau rules or policies?
  • Are there any concerns that might discourage participation in Tech Sprints that the Bureau could address?