ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Community Banking

Looking at Fintech through the Legislative Lens

August 23, 2017
Reading Time: 4 mins read

Rep. Randy Hultgren gives the keynote address at ABA’s inaugural Payments Forum in June. Photo by Stephanie Ascari.

By Brian Nixon

As banks continue to adapt to an ever-changing fintech landscape, lawmakers are similarly working to define their approach to innovation policy. We recently sat down with House Financial Services Committee member Randy Hultgren (R-Ill.), co-chairman of the House Fintech and Payments Caucus and keynote speaker at ABA’s Payments Forum in June, for a conversation about the intersection of technology and financial services, and what it means for the nation’s banks.

Q: What in particular sparked your interest in fintech?

A: I serve on both the House Financial Services and the Science, Space and Technology Committees, so that intersection of technology impacting finance, impacting service to consumers and new opportunities for people to get access to financial tools is very interesting to me. And even as just a consumer, [I’m] amazed by the ease of being able to do my own banking and trading from my phone. It really is a pretty exciting new world, but we’ve got to make sure we understand as a government how do we do this well, how do we make sure we’re not crushing new innovation through regulation—but at the same time, protecting consumers and making sure that financial information is secure.

Rep. Randy Hultgren gives the keynote address at ABA’s inaugural Payments Forum in June. Photo by Stephanie Ascari.

Q: What can Capitol Hill do to help encourage innovation?

A: The main focus of the caucus is education—helping my colleagues understand the new opportunities that come with new technology, but also the challenges: how do we regulate, what do we regulate, how do we [encourage] innovation while making sure that markets are working, customers are protected and that there’s a confidence with these new tools. I think there will be potential for hearings we can have in the Financial Services Committee focused on fintech issues, and a lot of overlap with some other areas as well.

Q: Is there a nexus between where you are with fintech policy and overall financial institution regulatory policy?

A: I’m concerned about it. I’ve been pretty vocal in my time on the Hill that I agree with my banking friends—that there has been this huge amount of cost and time and challenge with regulatory compliance. The reality [is] that when there’s a demand out there, markets will find a way and entities will find a way, but [they] sometimes find a way that gets around regulation. That’s not fair to the great banks that are out there playing by the rules, doing the right things, and yet are being hindered from fully engaging in benefits that technology can bring to their customers. Something we want to continue working toward is making sure that as new technology entries join in in providing financial tools, our existing financial institutions can do the same—that we’re not giving benefit to one over the other.

Q: Do you think banks and fintech companies need a safe space within which to innovate?

A: I do think if there’s this cloud of litigation [or] the regulatory hammer coming down, it can become a discouragement to them from trying something new. So it really is [about] finding that sweet spot: an environment that encourages new steps in using technology to provide better customer service or better access to banking. Absolutely we want to do that, and if there’s things we can do to take [away] some of the threats or concerns, whether it be litigation or regulatory challenge, I think we need to keep looking at that.

Q: What are your thoughts on the OCC’s special-purpose bank charter for fintech companies?

A: I’ve been a little disappointed. I’ve been involved in the last couple years in encouraging them to be open and deliberative and to take input from all people involved or impacted by this and was disappointed that it wasn’t as open of a process as I would have liked it to have been. My hope is with the new administration with some new people, we’ll be able to continue to look at this and study it and figure out how [to] do this well. I think there’s still opportunity there—I’m not going to give up on the process or potential for some good to come out of the OCC.

Q: You come from a heavily community-banking oriented state and district. What would you say to community bankers when it comes to fintech?

A: I want to give them hope. I think one of the things technology can be [is] an equalizer. It can provide some unbelievable abilities to serve, even from a relatively small platform. A relatively small community bank can do some of the same types of things that some huge entities can do.

The reality of competition from some of these new entries can be seen as a threat, and I understand that. But I also think there are opportunities for partnerships if we do it well, if we are encouraging all people, all entities to have good, positive access to this stuff. I think it’s going to be a good opportunity for our local community banks as well. I want them to thrive, personally—my story is one of great gratitude for a community bank that really opened up opportunities within my own family and my family’s small business back in Wheaton, Ill. So I want to make sure that that’s a part of future opportunities for others as well.

Q: How can bankers engage with lawmakers on fintech going forward?

A: These are challenging times—we want to continue hearing from our friends in the banking community. Together, how can we keep finding new technologies, new discoveries, new opportunities to create value, to create convenience [and] a confidence in these technologies? Being very confident in our local community banks and their work and also making sure that they’ve got the access to this technology can be great for customers and for growing our economy—which is ultimately what we want to see happen.

 

ADVERTISEMENT
Tags: FintechRegulatory burden
ShareTweetPin

Related Posts

Survey: Banks boosting cybersecurity due to AI while also investing in technology

Survey: Banks boosting cybersecurity due to AI while also investing in technology

Cybersecurity
June 13, 2025

Most U.S. banks are increasing their cybersecurity efforts because of emerging technologies such as generative artificial intelligence, and many of those same banks also list AI as a top business investment, according to a recent survey by auditing...

Old ways in a new world of banking

Old ways in a new world of banking

Community Banking
June 13, 2025

Meet American Bankers Council chair Jim Ryan, chairman and CEO of Old National Bank.

Survey finds high customer satisfaction with banking apps

Survey finds high customer satisfaction with banking apps

Newsbytes
June 12, 2025

Overall satisfaction with U.S. national banking apps is 669 on a 1,000-point scale, up 18 points from 2024. At the same time, the gap in satisfaction between best-performing and lowest-performing apps and bank websites shrunk to its lowest...

Nine highlights from nine decades of Stonier alumni

Nine highlights from nine decades of Stonier alumni

Community Banking
June 12, 2025

Over 90 years, more than 26,000 graduates of the ABA Stonier Graduate School of Banking have brought leadership and vision to their banks and to the industry. To commemorate Stonier’s 90th anniversary, we are highlighting nine remarkable Stonier...

House panel advances ABA-backed bills on trigger leads, other topics

House panel advances ABA-backed bills on trigger leads, other topics

Community Banking
June 11, 2025

In a memo sent in advance of the markup, ABA noted that H.R. 2808 would “curb the abusive use of mortgage credit ‘trigger leads’ while narrowly preserving them for legitimate, transparent and accountable uses.”

Fintech startup focused on asset risk builds bank advisory board, gets Citi Ventures funding

Report: Fintech firms show strong fundamentals, growth

Newsbytes
June 10, 2025

According to the report’s analysts, investors are demanding greater maturity, and regulators want more accountability. In addition, fintech firms are adopting next-generation technologies, pushing innovation and forcing other fintech firms and banks to keep up. Of the $378...

NEWSBYTES

ABA, associations urge CFPB to rescind changes to adjudication process

June 13, 2025

ABA DataBank: May inflation cooler than expected, but still above Fed’s 2% target

June 13, 2025

Consumer sentiment rebounds in June

June 13, 2025

SPONSORED CONTENT

AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025

PODCASTS

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025

Podcast: What bankers need to know about ‘First Amendment audits’

June 5, 2025

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.