The fintech industry in the United States lies at a critical crossroads heading into the new year, with several players already laying the framework for regulation that could shape or dictate the future trajectory of startups and investors.
Earlier this summer, proponents of fintech regulation got a push from the domestic banking sector, which put forth a new comprehensive framework aimed at policing and governing the industry, following its rapid ascension in the country. This took shape in the form of a white paper to US regulators that addressed a series of trends and topics.
One of the most common complaints currently in the US is the opposition and oversight that is felt by traditional venues and startups alike – that there is need for a new set of rules does not appear to be contested, though how and by what means this will be accomplished is up for debate.
Plea to Trump Transition Team
Moving forward, the fintech industry is eyeing Donald Trump’s presidency as an opportunity to make progress in this space, at the very least achieving some degree of clarity in terms of a cohesive strategy for fintech innovations and financial services.
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Financial Innovation Now (FIN), a public policy coalition that’s composed of company standouts, Amazon, Apple, Google, Intuit, and PayPal, has called on Mr. Trump to develop a national vision, coordinating a strategy to foster the development of FinTech innovations across the financial services realm.
FIN this week sent a letter to the Mr. Trump’s transition team, recommending that the incoming administration modernize digital payments regulations, helping empower consumers to manage their finances with the latest technology, and also increasing small business access to capital.
In addition, FIN also proposed that Mr. Trump appoint a Treasury Undersecretary for Technology, with the fundamental aim to ‘work across all federal financial regulators to foster competition and innovation in an antiquated banking sector to better serve consumers and the economy.’
While US regulators and Congress have previously recognized the industry and the potential fintech has, the letter also reiterates that more leadership and federal coordination is needed to promote a healthy environment and tangible progress.
The plea also took shake in the form of a call for action across several key public policy areas, which includes the promotion of open and interoperable standards for card payments security, streamlining of money transmission licensing, the use of open APIs to provide consumers, the widespread use of real-time payments, and using mobile technology to promote financial inclusion.