What the NCUA says about credit union use of emerging financial technology

The NCUA on Wednesday told credit unions that its board of directors is exploring how the agency can provide clarity around expectations regarding financial technology adoption in an effort that does not impede safe, fair and responsible federally insured credit union engagement.

The letter to credit unions stated that the NCUA supports initiatives by federally insured credit unions to better serve their members, and the rapid emergence of financial technology is creating opportunities for credit unions to increase speed of service, improve security and expand products and services.

The agency clarified certain expectations for credit unions contemplating the use of new or emerging distributed ledger technologies, DLT, and noted that it does not prohibit credit unions from developing, procuring, or using DLT. Further, DLT used as an underlying technology by credit unions is not prohibited if it is deployed for permissible activities and in compliance with all applicable laws and regulations, including applicable state laws or state supervisory authority requirements, according to the letter.

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