The House on Monday overwhelmingly passed legislation that would permit financial institutions to scan and retain information from a consumer’s driver’s license and personal identification cards in every state.
The bill, which passed 397-8, also would permit mobile banking apps to use state-issued driver’s licenses to personal identification cards as a means to verify a person’s identity.
Currently, various states have different standards.
CUNA officials praised passage of the bill.
“This legislation is important to help credit unions and other financial institutions remain competitive in a world where financial technology companies are often subject to fewer requirements,” said CUNA President/CEO Jim Nussle.
In debate on the House floor, Rep. Scott Tipton (R-Col.) said that the FDIC found that mobile financial services allow underserved consumers to successfully manage and maintain bank accounts.
“Unfortunately, access to mobile financial service products is not equal across the United States,” he added, saying that having a national standard would help solve that problem.
A Democratic colleague agreed.
“Again, in a day and age when more and more Americans are conducting their business online and through their smartphones but still continue to lack access to traditional banking services and financial products, we need to be doing all we can to simplify the process and encourage account openings through these platforms,” said Rep. Nydia Velázquez (D-N.Y.).
A similar bill has not passed the Senate.
Source: Credit Union Times, January 2018
