WASHINGTON, D.C. – The Financial Technology Association today applauded the Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), National Credit Union Administration (NCUA), and Financial Crimes Enforcement Network (FinCEN) for issuing a notice exempting banks and fintechs from the Customer Identification Program Rule’s (CIP) requirement to collect the full nine digits of a Social Security Number (SSN) directly from a customer at account onboarding:
“In today’s digital age, consumers expect modern identity verification processes that allow them to seamlessly access services while keeping their information safe,” said Penny Lee, President and CEO of the Financial Technology Association. “We applaud federal regulators for taking action today to allow flexible, risk-based verification approaches and ensure greater harmonization of expectations among agencies. We urge regulators to continue embracing modern, technology-driven approaches to customer identification, rather than relying on analog measures that don’t meet the needs of today’s digital economy.”
Following this announcement, banks and the fintechs they partner with will be able to leverage reputable third parties in their efforts to obtain taxpayer identification numbers, such as SSNs, at account opening. This change will streamline customer onboarding and right-size it for the digital age. This announcement follows calls from FTA and other industry groups to provide immediate exceptive relief from the requirement to collect all nine digits of an SSN directly from a customer and to modernize identity verification to meet consumer needs.
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The Financial Technology Association (FTA) is a network of fintech leaders shaping the future of finance. We champion the power of technology-driven financial services to catalyze innovation and advocate for modernized policies and regulations that reflect the digital transformation.