GAO Warns Congress on Gaps in Fintech Skills at Regulatory Agencies

The Government Accountability Office ("GAO") identified critical technology skills gaps at financial regulatory agencies and recommended practices to ensure that staff can effectively oversee fintech activities.

In a report to the House Financial Services Committee, the GAO explained that the skills gap ranges from a lack of basic technological proficiency to specialized expertise in areas like data analysis. The GAO said that less than half of the agency staff surveyed in focus groups claimed to have relevant fintech-related skills. The GAO found that the agencies have not systematically collected data on staff skills or assessed agency-specific needs.

The GAO recommended that financial regulators adopt leading workforce planning practices to ensure their staff can effectively oversee fintech activities. The GAO found that innovation offices established to research and monitor fintech developments at the Consumer Financial Protection Bureau ("CFPB"), National Credit Union Administration ("NCUA"), and Office of the Comptroller of the Currency ("OCC"), lack clear performance goals and measures to assess their effectiveness. Further, GAO said that while all regulators have incorporated technology into their supervisory capabilities, some, including the CFPB, the Federal Reserve Board, NCUA and OCC, lack performance measures for their technology-related strategic objectives. The GAO recommended the agencies adopt measures to gauge progress and enhance supervisory capabilities.