The Nationwide Multistate Licensing System (NMLS), the core technology platform used by state bank regulators, is undergoing a major redesign by the group that runs it, the Conference of State Bank Supervisors (CSBS).
The redesign will enable regulators to transform the licensing and supervision of non-bank financial institutions, including financial technology companies, or fintechs.
“Technology and data are powerful tools that can create sweeping benefits throughout the financial regulatory system. And that vision drives our efforts with the next-generation NMLS. We are committed to nothing less than modernized state regulation for a modernized financial services industry,” John Ducrest, commissioner of the Louisiana Office of Financial Institutions, said.
The updated platform will offer state regulators better risk management, greater efficiency, and a modern examination system, Ducrest said, who is chairman of the Board of Managers of the State Regulatory Registry, a CSBS subsidiary that owns and operates NMLS on behalf of state regulators.
Meanwhile, fintechs and other nonbanks will benefit from faster licensing approvals, more standardized experiences, and smoother sailing to nationwide expansion.
Regulators today use NMLS to license companies in non-bank industries such as mortgages, money services, consumer finance and debt collection. Further, NMLS Consumer Access is a website where consumers can check on companies they work with. For the NMLS redesign, CSBS selected Price WaterhouseCoopers LLP as the lead technology vendor.
Redesigning NMLS is part of a larger effort, CSBS Vision 2020, which state regulators are conducting as they move towards an integrated, 50-state system of licensing and supervision.