In the wake of proposed new regulations, a coalition of fintech companies hasformed a new trade group aimed at ensuring consumers can access andshare financial data with third-party companies.

The organization, called the Consumer Financial Data Rightsgroup, includes founding members Affirm, Betterment, Digit,Envestnet|Yodlee, Kabbage, Personal Capital, Ripple, Varo Moneyand others, according to a recent announcement.

“Together with promoting consumer choice and access to theseconsumer-first financial health tools, the CFDR is also committedto improving dialogue throughout the financial industry, activelyengaging the government and working with banks, fintech innovators,and third-party platforms,” the group said. “The CFDR aims to be aresource for policymakers, including the Consumer FinancialProtection Bureau, as they determine how to best assist consumersin leveraging their own financial data.”

The group said its first action will be to submit a jointcomment letter on the proposed Enhanced Cyber Risk Management Standards issued by theFederal Reserve, Office of the Comptroller of the Currency andFDIC. The proposed standards precede another proposal to allowfintech companies to be chartered as special-purpose nationalbanks, making them subject to the same standards as national banks,according to the OCC. It has faced some criticism from consumergroups concerned that giving fintech companies a national charterwould thwart state supervision and make it hard for state attorneysgeneral to take action against them.

The CFDR plans to ask regulators for a “risk hierarchy” ofcybersecurity risk in the fintech industry, it said.

NAFCU President/CEO Dan Berger and others said the coalescing offintech companies via the CFDR trade group doesn't really pose athreat to the credit union industry.

“I think they've seen the writing on the wall, with some groups– including myself here at NAFCU – concerned about a lot of fintechcompanies popping up and not having to adhere to a regulatoryschematic,” he told CU Times.

“This is just them being proactive. I don't think it doesanything for or against credit unions at this point,” he added.

Bryan Clagett, who is the chief marketing officer at Geezeo, acompany that creates white-label personalfinancial management apps for credit unions and banks, hadsimilar observations.

“The CFDR appears most interested in assuring the public hascontrol to opt-in to products or services that offer customervalue. In an ever-increasingly data-centric financial servicesindustry, one that sees new players entering the space regularly,it makes sense that the industry better represent the needs ofthose consumers that see the value,” he told CU Times. “Atthe same time, policymakers need a clearer understanding ofconsumer sentiment and need, while seeing the bigger picture, whichis American's need for better financial well-being. Fintech isslowly being embraced as an opportunity for and by the financialservices industry, rather than a threat. I envision a number ofways that credit unions can mitigate fraud risk by partnering withfintech.”

Kaleigh Simmons, who is the director of marketing at Rippleshot,a fraud analytics provider, said consumers continue look tofinancial institutions especially when it comes to fraud.

“Imagine you're a credit union member and an app can tell youthat yourcard has been compromised, or is at risk of fraudulentactivity. What's your next move going to be? Probably to yourfinancial institution for help on what to do next,” she said. “Froma competitive landscape standpoint, we still feel like banks,credit unions and the companies that service them are bestpositioned to battle fraud from a macro level.”

Berger and others are keeping their eye on fintech as a whole,however.

“Fintech absolutely could be a threat, but you're seeing creditunions and other community financial institutions investing intechnology and new mobile applications,” he said. “You're seeing credit unionsinvest in the same space these guys are playing in, and as long ascredit unions are offering not only their terrific member servicebut also have the technology that members want, they'll befine.”