ICBA supports proposed CFPB oversight of Big Tech firms

ICBA expressed support for a Consumer Financial Protection Bureau proposed rule that would establish bureau oversight of Big Tech firms and other large nonbank tech companies that offer payments services.

Background: The CFPB proposed rule would:

  • Require nonbank financial companies that handle more than 5 million transactions per year—such as Venmo and Cash App—to adhere to the CFPB’s authority to conduct examinations.

  • Ensure these tech firms adhere to funds-transfer, privacy, and other consumer protection laws that apply to banks and credit unions.

ICBA Comments: In a comment letter to the CFPB, ICBA said the rulemaking would ensure these entities are subject to the same regulatory requirements as banks when offering bank-like services. ICBA said this oversight is vital for preserving consumer trust, fostering competitive markets, and stimulating innovation while protecting consumer interests, though it cautioned the bureau to ensure the rulemaking does not indirectly increase regulatory burden on community banks.

Previous ICBA Advocacy: ICBA previously called on the CFPB to extend oversight to nonbank tech companies and to apply Gramm-Leach-Bliley Act-like data security standards to all companies in the payments and financial services ecosystem.