Twelve House members, including Reps. Patrick McHenry (R-N.C.) and Jared Polis (D-Colo.) today wrote to the Government Accountability Office seeking greater clarity on how the current regulatory structure affects partnerships between banks and fintech companies. Specifically, lawmakers asked the GAO to provide information on how fragmentation and overlap in regulation has slowed or harmed innovation; how collaboration between banks and fintech companies has helped financial institutions streamline their operations; the challenges facing banks and fintech companies within the current regulatory structure; and how the federal regulators can streamline their processes to encourage greater collaboration.
“Congress and federal regulators have an obligation to be educated and aware of how the transformation of financial services comports with established rules and regulations,” the members wrote. “This will provide policy makers with the opportunity to determine how innovation and competition can thrive in the existing framework.” In its advocacy on fintech issues, ABA is emphasizing the importance of strong partnerships between banks and nonbanks to drive customer-friendly innovation.
