Posted 8 months ago | by Ben Armstrong

US Bank Regulator Eye Fintech as Solution for Legacy Bank Issues

Fintech must is a familiar word for anyone in the financial industry.

In a recent interview with CNN, US Bank Regulator Brian Brooks showed positive interest in fintech solutions. The comptroller was willing to embrace the virtual currency technology for legacy bank issues.

Brooks described his current duty to “identify impediments that make it harder for people to get what they want and need.”

A positive attitude from the regulator is a good signal that the central bank has seen the potential of a fintech solutions and a future with crypto custody service is probably possible.

Brooks also discussed the coming Central Bank Digital Currency (CBDC), which could be approved by private companies but supported by bank deposits.

Fintech in the Payments Industry

Another point Brooks made is that faster payment solutions are possible. With the effect of COVID-19, it’s necessary to upgrade the aging international payment system, which according to Brooks, was no different than “19th century rails.”

The US banking system is lacking an instant payment solution and this, as Brooks noted, provided ample advantages for companies that function outside of the regulator’s control.

It’s time for banks to accept the fact that technology will have a strong impact, leading the banking industry to radical change.

Time for Better Systems

Brooks indicated that having, "faster payments that are innovated by private companies, but then supervised by federal watchdogs," would be his preferred method. Plus, the solution is already being applied in other parts of the world like the United Kingdom.

Books turned his discussion to 50 million Americans holders of cryptocurrency currently. His primary duty, as he explained, is ensuring that they can access their checking account “in the same safe and sound way.”

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