Fintech companies are using different strategies that sidestep federal financial regulation as they seek to expand their reach to consumers and access to the nation's financial system, potentially creating additional systemic risk. Now's the time for action.
There needs to be competitive equality between traditional financial institutions and fintech.
How This Impacts You
Allowing fintech companies to become national banks without offering deposit accounts or leverage state laws to acquire a special purpose charter could put credit unions at a competitive disadvantage. Lack of appropriate oversight and transparency could also put the national financial system, consumers, and taxpayers at risk.