WASHINGTON, D.C. – This morning, Financial Technology Association President and CEO Penny Lee testified on the future of financial data privacy before the House Financial Services Subcommittee on Financial Institutions and Monetary Policy hearing entitled “Revamping and Revitalizing Banking in the 21st Century.”
More than eight in ten Americans use digital financial tools to manage their money, and 93 percent say they benefit from fintech products and services, according to The Harris Poll. The financial services regulatory framework must address these developments in a manner that is consumer-centric and risk-focused while encouraging innovation.
“Digital tools are putting people in control of their finances and making it easier and cheaper to move, save, manage, keep, and invest money,” said Penny Lee, President, and Chief Executive Officer of the Financial Technology Association. “Proper use of consumer financial data is the future and will underpin a more fair, accessible, and inclusive financial system for all American consumers and small businesses.”
FTA members believe that consumer choice, trust, and protection are the cornerstones of financial services and support efforts to modernize financial data privacy expectations and create a clear, consistent, and uniform federal privacy standard that preempts the patchwork of state privacy laws. In particular, updating privacy laws like the Gramm Leach Bliley Act (GLBA) would help ensure a level playing field for all financial services participants, enhance consumer rights, and ensure that privacy and security standards fit the digital age.
Last year, FTA released data privacy principles adopted by all member companies to help inform any financial data privacy modernization effort. These principles state that: consumers should control their personal data; that information provided to consumers should be clear and transparent; that consumer data should only be used for stated and transparent purposes; it should be protected by leading security practices; consumer data should not be used in a discriminatory manner; and consumers should not fear retaliation for exercising their rights.
The Financial Technology Association (FTA) is a DC-based trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.