Welcome back to Human Capital. In this week's issue, we are highlighting some of the many voices that weighed on the Treasury Department's Tuesday issue of its 222-page report asking the Office of the Currency Controller to create a special card for the fintech companies .  The OCC followed the same seed on the same day, announcing that the banking supervisor would start requesting domestic bank card requests from the fintech companies engaged in the banking sector. "The federal banking system must continue to evolve and embrace innovation to meet changing customer needs and serve as a source of strength for the nation's economy," said currency controller Joseph Otting.
What does the Treasury report say? From the financial crisis, "a proliferation of skills and technological processes" has developed "increasing levels of cost effectiveness and speed."
The use of data and mobile devices, together with the speed and the expansion of the information flow, "all have to break down the barriers to entry for a wide range of start-ups and other companies based on technology that is now competing or partnering with traditional suppliers in almost every aspect of the financial services industry. "
From 2010 to the third quarter of 2017, another over 3,330 new technology-based businesses serving the financial services industry have been founded, 40% of which focuses on banking and capital markets.
Overall, the financing of these companies grew rapidly, reaching $ 22 billion globally in 2017, an increase of 13 times since 2010.
Rep. Maxine Waters, D-Calif., Member of the House's Financial Services Committee ranking, noted that while "has high hopes" for the ability of fintech companies to open consumer access to products and services, also "deep concern" for an adequate
Waters also opposed the "providing" few opportunities "for the deliberation on" this new charter regime "and has questioned the legal authority of the 39; OCC to take a step in this direction.
There is "concern that the OCC fintech paper could allow nonbanks to anticipate state laws that are intended to protect consumers," the consumer finance project of Thaddeus King, official for the Pew Charitable Trusts ", he told me in a Friday email.
However, he added, the" OCC "expressed an unfavorable opinion of banks collaborating with payday lenders and he also made it clear that he does not want the institutions hired by the OCC to offer loans that are inaccessible and unsafe. While the OCC advances, it must maintain the protection and protection of consumers. "
Nick Bourke, director of the consumer finance project The Pew Charitable Trusts, said in a Wednesday webcast that" not much "in the Fintech Treasury report" On consumer protection or how to ensure a healthy market and sure, "and warned against" running ahead to encourage more financial innovation before these strategies are resolved. "
Indeed, the newly released report by Pew suggests that US regulators are inspired by international regulators and create a more coordinated approach to encourage innovation, "one that reduces regulatory ambiguity and protects consumers."
As in Australia, "where the Treasury Department has taken steps to be an" agency " of coordination between all the various governmental actors, is probably a positive step for a federal regulator [U.S.] [like Treasury] to try to convene and create a sense of coordi nation between the rules tori ", said Bourke.
However, "it is too early to know whether this process [Treasury] will lead to the kind of clear objectives that regulators should be involved in promoting financial innovation in the first place," objected Bourke. "If this kind of collaboration leads to a sense of clear goals for why regulators should promote financial innovation and how they will do it in a way that protects consumers," is positive.
Former Treasury Officer Jonah Crane, previously highlighted in Human Capital, states that the Treasury White Paper on Fintech "recognizes the important role of access to consumer data in facilitating innovation for the benefit of consumers. "