On December 5, 2023, OCC’s Deputy Comptroller for Compliance Policy and Acting Deputy Comptroller for the Office of Financial Technology Donna Murphy today testified on the activities and initiatives of the OCC Office of Financial Technology before the Subcommittee on Digital Assets, Financial Technology and Inclusion, Committee on Financial Services of the U.S. House of Representatives. Ms. Murphy spoke about the OCC's role in monitoring and regulating banks' use of new and emerging technologies.
Murphy talked about how the OCC has adapted its supervisory approach to address the many technological innovations by OCC-supervised banks, and to support responsible innovation in the banking industry. These initiatives included establishing a dedicated Office of Innovation in 2016, then creating the Office of Financial Technology in 2022, which incorporates the former Office of Innovation. The new Office is focused on supporting responsible innovation and ensuring high-quality guidance and supervision for banks’ financial technology implementation.
Murphy stated that OCC’s current financial technology focus includes matters involving bank/fintech partnerships, artificial intelligence, digital assets and tokenization, as well as other new and changing technologies and business models that affect OCC-supervised banks. She also highlighted the importance of a strong third-party risk management to avoid harm to consumers or weakening of bank safety and soundness. In addition, she stated that the OCC recognizes the increasing interest by the banking industry in a wide range of uses for artificial intelligence. The agency acknowledges the many benefits of this new technology while also remaining focused on t its potential risks.
Murphy concluded her testimony by reiterating the OCC’s commitment to ensuring that OCC-supervised banks operate in a safe, sound, and fair manner, meet the credit needs of their communities, treat all customers fairly, and comply with laws and regulations, amidst significant technological change in the industry.
The OCC’s news release can be found here.
Read Murphy’s written testimony here.