The Conference of State Bank Supervisors is redesigning its Nationwide Multistate Licensing System to make it easier for regulators to license and supervise nonbank financial institutions like fintechs.
Regulators use the NMLS website to license companies that provide financial services like mortgages, money services, consumer finance and debt collection. A consumer access portal lets investors check up on the companies they work with.
“Technology and data are powerful tools that can create sweeping benefits throughout the financial regulatory system. And that vision drives our efforts with the next-generation NMLS. We are committed to nothing less than modernized state regulation for a modernized financial services industry,” John Ducrest, commissioner of the Louisiana Office of Financial Institutions, said in a statement.
The redesigned site will give state regulators better risk management, greater efficiency and a modernized examination system, Ducrest said. For the firms being regulated, Ducrest said they can expect “faster licensing approvals, more standardized experiences, and smoother sailing to nationwide expansion.”
User acceptance testing is beginning this fall, with training expected to begin next summer. The new site is tentatively scheduled to be launched in fall 2018.
The website redesign is part of a larger effort at the CSBS to bring all 50 state regulators onto the same licensing and supervisory system. The CSBS is also working to create a fintech advisory panel, harmonize multistate supervision and assisting state banking departments in their supervisory responsibilities.
— Read Centennial State Sets Cybersecurity Example on ThinkAdvisor.