Amazon Payments, Others to Advise State Bank Chiefs on Fintech

By Chris Bruce

Amazon’s payment unit will help advise state bank regulators on financial technology questions and how to modernize the state bank regulatory system, the Conference of State Bank Supervisors said Oct. 19.

The CSBS, which represents state regulators in all 50 states, Washington, D.C., and all U.S. territories, said Amazon Payments Inc. and 32 other companies will serve on its Fintech Industry Advisory Panel, which will advise the CSBS on matters involving nondepository financial institutions, including fintech companies.

Other companies on the panel include Affirm, Inc., Avant, BitPay, Inc., Kabbage, LendingClub, Microsoft Payments, OnDeck Capital, PayPal, Social Finance, Inc. (SoFi), and Western Union.

The advisory panel, which will start its work with a conference call later this month, will have three working groups: money transmission and payments; lending; and community banking and innovation.

Albert Forkner, CSBS chairman and commissioner of the Wyoming Division of Banking, said the panel will help ease fintech operations across state lines.

“State regulators want to listen to fintech leaders, take action to make the multi-state experience as seamless as possible, and ensure consumers and local economies reap the benefits of innovation,” he said in a statement. “At the same time, we will preserve the essential financial safeguards and local perspective provided by the state regulatory system.”

Creation of the advisory panel is the latest move in connection with Vision 2020, a series of CSBS initiatives aimed at building an integrated, 50-state system aimed at licensing and supervising for fintech companies and other such firms while staying focused on consumer protection and safety and soundness.

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