May 9, 2018
FinTech investment and talent will flow to countries where regulation facilitates innovation. While regulators in the United States have made progress, our international peers are moving quickly to modernize regulations in response to FinTech. This is too important to be left behind. Regulators can make changes that facilitate innovation and partnering without jeopardizing financial stability or consumer protection. – ABA
The evolution of the bank-FinTech narrative had a variety of implications touching every party, including regulatory authorities and their approach to evaluating societal & economic consequences of the changing environment. Regulations around the world are being re-evaluated to address changing relationships between financial institutions, technology startups, and large tech corporations.
The American Bankers Association (ABA), a banking trade association of community, regional, and money center banks holding companies, savings associations, trust companies, and savings banks, just published a paper offering a framework for responsible innovation. The following subjects are covered by the framework: a path for startups to become banks, digital account opening, regulations around pilots, and more. ABA members together employ more than 2 million women and men, hold nearly $17 trillion in assets, safeguard $13 trillion in deposits, and extend more than $10 trillion in loans.
Specific recommendations from ABA on how to facilitate responsible innovation in financial services: