Technology industry leaders Amazon, Apple, Google, Intuit and PayPal have formed a coalition called Financial Innovation Now (FIN) to promote policies to help foster greater innovation in financial services. Technology frontrunners want to have an outlook in future policy debates as the landscape changes and to provide solutions to issues such as security & fraud prevention, real-time payments, online lending and access to basic financial services.
The formation of the group comes as banks have been increasingly vocal about the weight of the regulatory burden and the need to create more level of guidelines and regulations for new entrants to the industry from the technology sector.
The organization and its member companies believe that technology transformation will empower consumers by improving access to financial tools and services, increasing convenience and ease of use, and helping users save money and lower costs.
In addition, it will enable small businesses to grow and succeed with greater access to capital and analytical tools to make strategic, data-driven decisions and strengthen authentication & security solutions.
The organization is aiming at various reasons for the need for innovative stakeholders to accelerate the pace of change in financial services, such as:
- Funds transfer between bank accounts should be faster
- Entrepreneurs should have access to capital to grow their business
- Cashing and spending a paycheck should be easier and low-cost
- Consumers should be able to make payments safely at the touch of single button
Financial Innovation Now will promote policy issues that focus on:
- Trust and safety in financial services
- Leverage technology to reduce barriers to financial services for the underserved
- Enable innovation and real-time payments clearing processes
- Streamline rules for online lending marketplaces
- Promote best practices for consumer and small-business online lending
- Unlock the power of financial applications
"The regulatory environment must allow these new innovations to enter and compete in the marketplace," said Brian Peters, Executive Director of Financial Innovation Now. "We look forward to working with policymakers to promote the adoption of new services, many of which are already bringing significant benefits to consumers and small businesses today."
The alliance could help to resolve complexity and security issues of the new digital landscape, and the need for standards and common understanding among various players involved. FIN could play an important role in setting standards and shaping the discourse around how digital payments and mPayment systems fit into the overall payments ecosystem going forward.