Nichols Discusses Role of Regulators in Innovation
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As community banks continue to innovate—a task that has only become more important since the COVID-19 pandemic began—regulators play two key roles in that process, ABA President and CEO Rob Nichols said during a virtual industry event today. First and foremost, regulators “need to provide the clarity that banks need to adopt new technologies,” Nichols said, adding that the agencies “have done a nice job” in this area.
The second key role regulators play, according to Nichols, is ensuring “that the innovations are delivered responsibly in a way that protects consumers.” That includes taking a cautious approach to entities “that want to walk and talk like banks without being subject to same level of oversight and supervision,” he said. “This is where I think the regulators have an important role to be thoughtful and deliberate and be cautious so that we don’t introduce risk into the system.”