ABA Cautions Against Global Regulatory Frameworks for Fintech

In response to the Consumer Financial Protection Bureau’s call for feedback on its partnership in the Global Financial Innovation Network, ABA urged the bureau to clarify that bank-startup partnerships are among the “innovative companies” GFIN intends to serve. ABA’s comment letter yesterday also stressed that the scope of GFIN should not be expanded to recommend best practices or regulatory frameworks, as these introduce delays that could impede regulators’ ability to respond to innovation. Instead, GFIN should be used to facilitate regulatory cooperation, learning, regulatory engagement, and transparency.

“The GFIN can play an important role in facilitating information sharing among regulators and cross-border pilot programs,” ABA concluded. “As it does so, it should not expand its scope to include best practices that could limit innovation.”