TechNet supports private sector efforts to empower consumers to better manage their financial lives and enjoy new, safe, secure, and reliable financial tools. Federal agencies should update outdated rules in order to utilize modern financial technologies and focus on recommendations made in the Treasury Department’s 2018 report, “A Financial System That Creates Economic Opportunities: Nonbank Financials, Fintech, and Innovation.” Overall, the federal regulatory environment must be more amenable to emerging fintech innovations. In particular, TechNet supports the following ideals:
· Streamlined rules for the online lending marketplace. Federal and state regulations fail to address the constant change, diversity, and innovation in the marketplace. Federal and state policymakers should streamline lending laws across jurisdictions to account for the innovative lending market of today.
· Policymakers should promote industry best practices that protect consumers and small businesses while maximizing diversity and innovation in lending services.
· Modernized rules for deposit-taking. Prudential banking regulators should modernize outdated regulations that restrict third parties’ ability to connect consumers’ deposits and financial institutions.
· Unlock the power of financial apps. Policymakers should empower consumers and small businesses to take advantage of financial applications on their smartphones that help them improve security, convenience, and reliability.
· Leverage technology to reduce barriers to financial services, particularly for the unbanked and under-banked. The internet, cloud computing, and mobile innovations should be empowered to thrive in an open environment with limited regulatory burdens, requiring a reassessment of existing barriers to adoption along with incentives to pursue use of innovations that promote individual and small business access to financing.
· Rulemaking that would allow for a robust consumer right to access and share their financial records. Federal regulators should establish an operational framework for secure, consumer-authorized data sharing and access through a formal rulemaking that clearly establishes the form and manner in which consumers can securely request that their financial information be shared with approved third parties.
Payment System Principles
· Promote enhanced security and convenience through continuous innovation. No one technology should be mandated for security and authentication, nor should one technology become a de facto mandate through “floor-setting.”
· Support policies that promote new entrants and empower consumers to utilize a broad array of financial technology products and solutions.
· Support efforts to reduce fraud in the financial industry through the empowerment of innovators and innovation.
· Promote free market growth of the payments industry and defend it against market-controlling legislative and regulatory policies.