Financial Technology: Agencies Can Better Support Workforce Expertise and Measure the Performance of Innovation Offices
Fast Facts
Banks and credit unions are increasingly using new technology—known as "fintech"—for services like paying bills with mobile wallets. So it's crucial that regulators have the necessary skills to make policy for and oversee fintech.
Federal regulators require many of their employees to have some technology skills, such as data analysis. But the agencies haven't assessed or identified critical fintech skills or skill gaps they need to address.
In addition, some agencies have offices dedicated to financial innovation and technology, but they don't have performance goals and measures for this work.
Our recommendations address these issues.
Highlights
What GAO Found
Financial technology refers to the use of technology and innovation to provide financial products and services. The Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), Board of Governors of the Federal Reserve System, National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC) require many of their staff responsible for policymaking and oversight related to financial technology to have some level of technological skills, according to 181 position descriptions GAO reviewed. The skill requirements ranged from basic technological skills, such as knowledge of office software, to more specialized knowledge, such as expertise in data analysis. The agencies expressly required knowledge of financial technology in 18 of the position descriptions. GAO held focus groups with agency staff where less than half of the participants said they had financial technology-related skills.
The agencies have taken some steps to incorporate leading workforce planning practices identified by GAO in prior work. For example, all of the agencies have developed programs or provided training to help develop staff knowledge of financial technology. However, the agencies have not systematically or comprehensively collected data on their policymaking and oversight staff's technological skills related to financial technology or conducted assessments to determine the financial technology skills these staff need. The agencies also have not measured the effectiveness of their financial technology training in addressing their skill needs. By fully incorporating leading workforce planning practices, the agencies could help ensure their staff have the knowledge and skills needed to effectively conduct policymaking and oversight related to financial technology.
CFPB, NCUA, and OCC have offices dedicated to addressing innovation in financial technology or the financial industry more broadly. These innovation offices research and monitor industry developments and communicate with industry participants, such as through conference participation (though CFPB's and OCC's offices have recently paused or stopped some outreach and innovation-related activities). The three innovation offices, however, have not developed performance goals or measures that target their key activities. Doing so could help ensure the offices are better able to assess the effectiveness of their initiatives and the extent to which they are accomplishing their missions.
All of the regulators reported using a variety of technologies to improve their supervisory capabilities. Examples include a tool that reviews compliance with certain legal requirements and the use of machine learning techniques to help identify risk. Additionally, all of the regulators had at least one strategic objective focused on improving supervision with technology. However, CFPB, the Federal Reserve, NCUA, and OCC have not developed performance measures for these objectives. Doing so could better position the agencies to gauge their progress toward enhancing their supervisory capabilities through the use of technology.
Why GAO Did This Study
Financial institutions are increasingly using financial technology. However, policymakers have raised questions about whether regulators' staff have the technological skills and expertise needed to oversee entities offering products and services that use this technology. GAO was asked to review regulators' financial technology expertise, among other issues. This report examines (1) the technological skills or expertise of regulators' staff, (2) regulators' workforce planning practices, (3) how regulators address innovation in financial technology, and (4) how regulators use technology to improve their supervisory capabilities.
GAO reviewed 181 position descriptions and documentation on regulators' workforce planning, innovation offices, and supervisory technology. GAO also conducted 16 focus groups with nongeneralizable samples of policymaking and oversight staff from each agency (90 total staff across the five agencies).
Recommendations
GAO is recommending that all five agencies collect staff skillset data and fully incorporate leading workforce planning practices; that CFPB, NCUA, and OCC develop performance measures for their innovation offices; and that CFPB, the Federal Reserve, NCUA, and OCC develop performance measures for their supervisory technology strategic objectives. NCUA agreed with the recommendations. CFPB, FDIC, the Federal Reserve, and OCC did not agree or disagree with the recommendations, but indicated they would take actions to implement them.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Consumer Financial Protection Bureau | The Director of the Consumer Financial Protection Bureau should fully incorporate leading workforce planning practices in the primary offices involved in policymaking and oversight related to financial technology by conducting strategic workforce planning that addresses financial technology; collecting staff skillset data and determining the critical financial technology skills the agency needs; developing targeted strategies to address financial technology-related skills gaps; and measuring the effectiveness of its financial technology-related training in addressing skill needs. (Recommendation 1) |
In June 2024, CFPB officials said the agency has initiated the process to hire staff to begin work on fully incorporating workforce planning practices in the primary offices involved in policymaking and oversight related to financial technology. In September 2026, CFPB officials told us that the agency continues to perform activities and work regarding this recommendation. We will continue to monitor agency progress towards implementing this recommendation.
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| Consumer Financial Protection Bureau | The Director of the Consumer Financial Protection Bureau should develop performance goals and measures for CFPB's Office of Competition and Innovation that cover key aspects of the office's activities, such as outreach to industry participants, and that are clear, targeted, and measureable. (Recommendation 2) |
In June 2024, CFPB officials told us the agency is in the process of developing performance goals and measures for CFPB's Office of Competition and Innovation. In April 2025, CFPB published its annual report to Congress on the status of certain open public audit recommendations. In that report, CFPB stated that implementation of this recommendation was paused pending direction from CFPB leadership on CFPB's regulatory and deregulatory agenda. We will continue to monitor agency progress towards implementing this recommendation.
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| Consumer Financial Protection Bureau | The Director of the Consumer Financial Protection Bureau should develop performance measures that are specific to its strategic objectives related to supervisory technologies. (Recommendation 3) |
In June 2024, CFPB officials told us the agency is in the process of developing performance measures that are specific to its strategic objectives related to supervisory technologies. In September 2026, CFPB officials told us the agency continues to perform activities and work regarding this recommendation. We will continue to monitor agency progress towards implementing this recommendation.
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| Federal Deposit Insurance Corporation | The Chair of the Federal Deposit Insurance Corporation should fully incorporate leading workforce planning practices for the primary offices involved in policymaking and oversight related to financial technology by collecting staff skillset data and determining the critical financial technology skills the agency needs; developing targeted strategies to address financial technology-related skills gaps; and measuring the effectiveness of its financial technology-related training in addressing skill needs. (Recommendation 4) |
In June 2024, FDIC officials told us the agency is working on corrective actions to address this recommendation. In September 2026, FDIC developed an action plan outlining steps the agency would take to identify fintech skill needs, address skill gaps through training, and conduct a post training assessment. We will continue to monitor agency progress towards implementing this recommendation.
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| Federal Reserve System | The Chair of the Board of Governors of the Federal Reserve System should fully incorporate leading workforce planning practices in the primary offices involved in policymaking and oversight related to financial technology by collecting staff skillset data and determining the critical financial technology skills the agency needs; developing targeted strategies to address financial technology-related skills gaps; and measuring the effectiveness of its financial technology training in addressing skill needs. (Recommendation 5) |
In November 2025, Federal Reserve officials provided documentation on a skills gap assessment conducted by its Novel Activities Supervision Program and on training provided to staff on crypto assets, tokenization, and artificial intelligence. We will continue to monitor agency progress towards implementing this recommendation.
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| Federal Reserve System | The Chair of the Board of Governors of the Federal Reserve System should develop performance measures that are specific to its strategic objectives related to supervisory technologies. (Recommendation 6) |
In 2026, the Federal Reserve developed performance measures in response to our recommendation. Specifically, the Federal Reserve's 2024-2027 Strategic Plan includes an objective that focuses in part on maximizing the utility of data and technology investments to support effective, efficient, and secure operations. Supervisory technology initiatives that contribute to this strategic objective include the Federal Reserve's implementation of two technology platforms: the Common Exam Platform and the Common Data Platform. According to the Federal Reserve's 2024 performance plan, the agency planned to strengthen its supervisory approach and common business practices across all portfolios in its implementation of the Common Exam Platform and respond to increasing intensity of supervision of high-risk firms through the development of data-related improvements and analytics in the Common Data Platform. The Federal Reserve developed performance measures for these two technology platforms. For example, one of the critical metrics for the Common Exam Platform includes increasing the percentage of critical functionality covered by automated tests to greater than 50 percent. Measures for the Common Data Platform focus on data center asset migration, user adoption and experience, and cost savings (for example, reducing labor costs by 10 percent).
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| National Credit Union Administration | The Chair of the National Credit Union Administration should fully incorporate leading workforce planning practices in the primary offices involved in policymaking and oversight related to financial technology by conducting strategic workforce planning that addresses financial technology; collecting staff skillset data and determining the critical financial technology skills the agency needs; developing targeted strategies to address financial technology-related skills gaps; and measuring the effectiveness its financial technology training in addressing skill needs. (Recommendation 7) |
In 2024 and 2025, NCUA took actions to address our recommendation. Specifically, in 2024, NCUA completed a workforce planning process where it analyzed its current fintech workforce composition, identified challenges fintech staff faced in attaining and maintaining its skills, and identified some options to help address those challenges. As part of this process, NCUA leadership assessed its staff's current competencies and identified a need for future skills in AI, digital technology, and blockchain technology. Additionally, to address its skill needs, NCUA provided staff with fintech training in 2024 and 2025. For example, NCUA provided training on AI in lending decisions and blockchain technology, as well as other fintech areas. To assess its training, NCUA administered course evaluations to obtain feedback from participants. Among other things, the evaluations asked staff to rate whether the training met its stated goal and whether staff are able to apply what they learned.
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| National Credit Union Administration | The Chair of the National Credit Union Administration should develop performance goals and measures for NCUA's Office of Financial Technology and ACCESS that cover key aspects of the office's activities, such as outreach to industry participants, and that are clear, targeted, and measureable. (Recommendation 8) |
In April 2026, NCUA published its 2026 Annual Performance Plan with a performance goal and measure for its strategic objective related to financial technology. The goal and measure cover key aspects of NCUA's Financial Technology Division, which replaced the former Office of Financial Technology and ACCESS, and are clear, targeted, and measurable. Specifically, the goal involves promulgating regulations and guidance about credit union adoption of financial technologies and other innovations. The measure calls for NCUA to issue final regulations on permissible stablecoin activities for all federally insured credit unions. This goal and measure will help NCUA better assess its financial technology initiatives and the extent to which it is accomplishing its mission.
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| National Credit Union Administration | The Chair of the National Credit Union Administration should develop performance measures that are specific to its strategic objectives related to supervisory technologies. (Recommendation 9) |
In April 2026, NCUA published its 2026 Annual Performance Plan with a performance goal and measures for its strategic objective on using technology tools to support its examination and supervision programs. The goal involves examiner use of enhanced data, analytic models, and artificial intelligence-based technology tools to improve the efficiency and effectiveness of risk identification, analysis, and decision-making. The associated performance measures call for NCUA to deploy a data-driven model that assesses credit union risks and achieve key milestones in its artificial intelligence roadmap. The goal and measures will help NCUA better monitor its progress toward enhancing its supervision through the use of supervisory technology.
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| Office of the Comptroller of the Currency | The Comptroller of the Currency should fully incorporate leading workforce planning practices in OCC's primary offices involved in policymaking and oversight related to financial technology by collecting staff skillset data and determining the critical financial technology skills the agency needs; developing targeted strategies to address financial technology-related skills gaps; and measuring the effectiveness of its financial technology-related training in addressing skill needs. (Recommendation 10) |
In September 2026, OCC officials told us OCC is undergoing an organizational assessment and restructuring. Officials said the organizational restructuring has been undertaken to ensure OCC's workforce and infrastructure are positioned to accomplish OCC's mission in a fast-changing and technologically complex environment, including having requisite financial technology skills and supervisory technologies in place. We will continue to monitor the agency's actions toward implementing this recommendation.
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| Office of the Comptroller of the Currency | The Comptroller of the Currency should develop performance goals and measures for OCC's Office of Financial Technology that cover key aspects of the office's activities, such as outreach to industry participants, and that are clear, targeted, and measureable. (Recommendation 11) |
In September 2026, OCC officials told us OCC is undergoing an organizational assessment and restructuring. Officials said the organizational restructuring has been undertaken to ensure OCC's workforce and infrastructure are positioned to accomplish OCC's mission in a fast-changing and technologically complex environment, including having requisite financial technology skills and supervisory technologies in place. We will continue to monitor the agency's actions toward implementing this recommendation.
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| Office of the Comptroller of the Currency | The Comptroller of the Currency should develop performance measures that are specific to OCC's strategic objectives related to supervisory technologies. (Recommendation 12) |
In September 2026, OCC officials told us OCC is undergoing an organizational assessment and restructuring. Officials said the organizational restructuring has been undertaken to ensure OCC's workforce and infrastructure are positioned to accomplish OCC's mission in a fast-changing and technologically complex environment, including having requisite financial technology skills and supervisory technologies in place. We will continue to monitor the agency's actions toward implementing this recommendation.
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