Tipton Bill to Increase Access to Banking in Rural Communities Receives Praise
Congressman Scott Tipton’s (CO-03) Making Online Banking Initiation Legal and Easy, or MOBILE, Act of 2017 (H.R. 1457) was the focus of a recent hearing on targeted regulatory relief for community financial institutions. The bill, which would clarify existing law and solidify a uniform standard of compliance for online banking services, has received praise from industry and consumer groups.
In testimony submitted to the Financial Services Committee on behalf of the Heartland Credit Union Association, Rick Nichols, President and CEO of the River Region Credit Union wrote, “Credit unions support H.R. 1457 … This legislation is an important step toward helping credit unions and other financial institutions remain competitive in a market increasingly disrupted by financial-technology companies, who are often subject to fewer regulatory requirements.”
The MOBILE Act has also received support from the American Bankers Association, Consumer Bankers Association, Center for Financial Services Innovation, Financial Services Roundtable, and Innovative Lending Platform Association.
In a letter to Tipton, Richard Hunt, President and CEO of the Consumer Bankers Association, wrote, “The MOBILE Act provides consumers easier access to the highly regulated banking industry by simplifying their ability to open an account through the process of swiping, scanning or copying their state issued identification card. Thank you for introducing legislation on this important issue.”
James Ballentine, Executive Vice President at the American Bankers Association (ABA), wrote, “The ABA believes that this legislation is mutually beneficial to both, our members and their customers, as it will help expand access to crucial banking services for underbanked populations by offering similar retail services through mobile technology.”
Following the hearing, Tipton said, “There are many families in rural communities across the country who are struggling to achieve financial security, because they can’t easily get to a bank to open checking or savings accounts. Smartphones can change this, but we need the MOBILE Act to catch our laws up to the technology.”