WASHINGTON, D.C. – The Financial Technology Association released a statement on the Department of Treasury’s report, “Assessing Impacts of New Entrant Non-Bank Firms on Competition in Consumer Finance Markets.” The report is a product of President Biden’s July 2021 Executive Order, “Promoting Competition in the American Economy.”
“Today’s report affirms the power of financial technology to drive competition and give consumers access to lower-cost and easier-to-use financial products,” said Penny Lee, Chief Executive Officer of the Financial Technology Association. “Our members share the Administration’s commitment to fairness, transparency, and competition in our financial system.”
Fintechs are subject to robust oversight by state and federal financial regulators. They are covered by the same activities-based and entity-based regulatory frameworks that govern the entire U.S. financial services industry. The Treasury report highlights the consumer benefits of many fintech products and their ability to expand access to financial services under these regimes. Looking ahead, FTA supports a risk-based approach to further modernize existing regulations and continue advancing innovation and a consumer-centric future of finance.
For additional information, FTA recently released a white paper, “Fintech Regulation, Explained: Modernizing Financial Policy to Drive Inclusion and Innovation,” on how federal and state regulators apply essential consumer protection laws and regulations to fintech providers.
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The Financial Technology Association (FTA) represents 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.