How will the US Congress affect financial technology?


nnnIn the history of the largest consumer data leak occurred after the incident, the US Senate Bank, Housing and Urban Affairs Committee recently on the financial technology (FinTech) this topic held a long-awaited hearing. The idea of ​​the whole hearing is that the emerging and innovative technologies to promote the arrival of products, services and processes and sustainable development not only to the financial services industry has brought revolutionary changes and improvements, but also brought a new policy challenge. This gives the government what kind of legislative response to promote and encourage financial and technological innovation, while protecting consumers from the potential risks, balanced the interests of all parties raised the problem.n
nnTranslation: Clovern
nFollowing the announcement of the largest consumer data leak in history, the US Senate Committee on Banking, Housing and Urban Affairs recently held a conference on FinTech’s topic. Long-awaited hearing. During the hearing, it has repeatedly endorsed the view that the arrival of innovative products, services and processes and the continued development of innovative technologies not only brought revolutionary changes and improvements to the financial services industry, but also brought new Policy challenges. Therefore, the Washington government has also begun to organize how to develop meaningful legislation to promote and encourage financial and technological innovation while protecting consumers from potential risks in an attempt to take close action to balance the interests of all parties. Considering that the upcoming government action will have a significant impact on the financial technology industry, it is no wonder that this activity has aroused great interest among consumers, entrepreneurs, financial institutions and temporary observers.n
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nIt is too earlyn
nThe Senate is still exploring potential ways to deal with this area, given that financial technology is still in its nascent state. As financial technology plays a more and more important role for consumers, small businesses, financial institutions and entrepreneurs, Congress has begun to analyze what legislative responses are needed to continue to drive innovation and protect consumers. While the Commission’s approach can be said to be intrinsically exploratory, the legislator seems to have conceived several policy options, including:n
nNational financial and technical charter: At present, financial technology companies are subject to different laws and regulations of the state. One proposal to streamline the compliance process is to provide a special national banking charter for financial technology companies. Although the proposal was not fresh (the Office of the Ombudsman had previously advocated this policy), but this proposal was referred to the general level during the hearing or could be summed up as a matter that Congress was seriously considering An alternative.n
nRegulatory Sandboxes: Taking into account the innovative nature of the new financial technology platform and services, as well as the need to fully understand the risks of new technologies, the proposal for further discussion involves creating a “regulatory sandbox” that encourages innovation while at the same time Test products and solutions in a regulated environment “. This approach is similar to the programs already developed by the UK Financial Markets Authority, the Monetary Authority of Singapore and the Securities and Investments Commission of Australia.n
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n2. data, data, or data.n
nConcerns about data collection, data protection and data ownership will continue to guide Congress’s attitude towards financial technology regulation. While the recent impact of more than 140 million Americans’ consumer information disclosure incidents is not directly related to financial technology, the disclosure of the information based on the nature of the network highlights the tremendous and increasingly important role of data in our lives. Congress is not only concerned with how to protect consumers’ financial data, but also on how to collect the data and how it will eventually be used. While recent data disclosure incidents exposed the risks and risks of exposure and potential use of traditional consumer data. However, with these security issues, the evolving market lending industry and its reliance on alternative data (ie, online activities and habits) make borrowing decisions to generate further questions about new categories of information that may be more information than traditionally available The information is more personal.n
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n3. Consumer protection is importantn
nOne of the key issues facing the US Senate Banking team is the need to balance the relationship between consumer protection, security and the importance of encouraging financial and technological innovation. Senate members are also not aware of the potential of the market borrowing platform, digital and mobile payments, and other financial technologies to improve the lives of many people. However, the risk of these technologies is also the case, it is not surprising. For example, the ability of markets and point-to-point lending solutions and platforms to provide more credit opportunities for non-bank accounts is also readily recognized. It is also worth noting that there is a need to ensure that the new platform does not provide credit on unreasonable conditions. The demand for new financial technology products and services creates many new opportunities for entrepreneurs and innovators; but if the hearing shows signs of correctness, we can expect the measures that Congress will take, Consumer interests in the case of implementation.n

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