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Industry officials discuss regulatory approaches to fintech
Financial regulators, including Treasury Secretary Steven Mnuchin and CFPB Office of Innovation Director Paul Watkins, discussed the desire to promote innovation while appropriately managing risk—both in terms of consumer protection and safety and soundness—at a NAFCU-attended fintech conference on Wednesday. The FDIC-hosted event also featured FDIC Chairman Jelena McWilliams, who addressed topics such as Industrial Loan Company charters, data security and regulatory improvements to help agencies stay abreast of a rapidly evolving technological landscape.
NAFCU acknowledges that fintech can produce real benefits to consumers, including increased speed, convenience and new product offerings that make it easier for them to manage their financial lives. However, the association has urged lawmakers and regulators to ensure a level playing field between fintech companies and financial institutions, from data security to consumer protection.
Attendees, which included NCUA Chairman Rodney Hood, also heard from Comptroller of the Currency Joseph Otting, academics, and other industry stakeholders on policy, research and regulation related to fintech.
Panel discussions at the conference explored a number of issues including use of digital footprints as a complement for traditional credit scores, the rise of non-depository lenders in relation to regulatory arbitrage and the effects of fintech in the context of peer-to-peer lending and access to credit.
Earlier this week, NAFCU Senior Counsel for Research and Policy Andrew Morris commented on fintech company Robinhood's application for a national bank charter in an American Banker Article.