The Conference of State Bank Supervisors (“CSBS”) recently launched a major redesign of the Nationwide Multistate Licensing System (“NMLS”) as part of a larger effort to move towards an integrated, 50-state system of licensing and supervision by state regulators. As the national organization of bank regulators from all 50 states and U.S. territories, CSBS hopes to transform the licensing and supervision of non-bank institutions with a modernized technology platform to keep up with a modernized financial services industry.
One new feature of the next-generation NMLS is a state examination system that has uniform process capabilities, data analytics, and information sharing among states. This benefit, which is not available on the current NMLS, will enable state regulators to streamline many exam workflows. Another new feature will streamline the process for the single-state licensing of low-risk applications, allowing faster approvals for the vast majority of applications. Overall, NMLS will offer state regulators greater efficiency and better risk management, while industry companies will benefit from faster licensing approvals, more standardized processes, and greater ease in nationwide expansion efforts.
The CSBS Media Release is available here.