Banking regulator highlights MALPB charters, IT recovery and AI confidentiality needs
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Summary
The banking commissioner described the department's expanded business lines including registration of litigation finance companies, support for Georgia's merchant-acquirer limited-purpose bank (MALPB) charters, and IT investments to shorten backup recovery times and ensure AI tools preserve confidential data.
The commissioner appearing for the Department of Banking told the Appropriations subcommittee the agency is adapting to new business lines and technological needs while supporting staff recruitment.
The commissioner said the department took on registration of litigation finance companies as part of tort-reform work and emphasized support for the state’s MALPB charter, which allows payment processors to access card networks without a traditional bank sponsor. The presenter said Fiserv is already chartered and processing transactions, Stripe and Checkout.com approvals were cited as recent developments, and the MALPB model is a significant business line for Georgia.
On information technology, the commissioner described two IT-focused FY26 items: funding for a modern data-backup solution to reduce restoration time from weeks to an estimated 4 hours and funds for AI software that must preserve confidentiality and not use department data to train public models. The commissioner told the committee the current backup solution often fails recovery tests and that a hybrid cloud/on-premises solution should limit data loss to about four hours.
The commissioner also thanked the governor's proposed $2,000 salary supplement for employees and noted the department’s workforce and industry oversight responsibilities.
Committee members asked about coordination with the Georgia Technology Authority and praised the department's presentation; no formal votes were taken.
