The CFPB has published a notice in the Federal Register seeking ideas on how it can use Tech Sprints to advance regulatory innovation and compliance. Comments are due by November 8, 2019.
The CFPB’s notice describes Tech Sprints as a model that:
“gather[s] regulators, technologists, financial institutions, and subject matter experts from key stakeholders for several days to work together to develop innovative solutions to clearly-identified challenges. Small teams include participants from both the regulator and a diversity of entities to ensure the inclusion of regulatory, industry, and technology perspectives. The regulator assigns a specific regulatory compliance or market problem to each team and challenges the teams to solve or mitigate the problems using modern technologies and approaches. The teams then work for several days to produce actionable ideas, write computer codes, and present their solutions. On the final day, each team presents to an independent panel of judges that selects winners. The most promising ideas can then be further developed either in collaboration with the regulator or by external parties.”
The notice indicates that Tech Sprints have been used successfully by the Financial Conduct Authority in the United Kingdom and used in the United States by federal agencies such as the Census Bureau and the Department of Health and Human Services.
The CFPB indicates that the information it receives will help it identify “how stakeholders can work together to create a regulatory environment” that “allows innovation to flourish” while giving consumers “the appropriate level of protection and suitable access to the benefits of technological advancements.” The Bureau asks for ideas on how it can use Tech Sprints in various areas such as HMDA submissions, its supervisory activities, the exchange of data between regulated entities and the Bureau, and the reduction of regulatory compliance burdens. The notice also includes a list of questions to which the Bureau seeks responses, one of which asks what regulatory compliance issues could benefit from innovation through a Bureau Tech Sprint.