Some interesting and sensible comments were made by Raj Date, former deputy director of the Consumer Financial Protection Bureau (CFPB) at a recent American Banker conference, regarding the sensitive issue of regulating fintech organizations.
First, he said, regulatory agencies need to engage with the people at these tech companies to learn more about what they do. While regulators who oversee large banks with thousands of employees may not see the value in meeting with small-scale operations, it is imperative, Date said.
“After all, it’s hard to effectively regulate on ideas you’ve never heard of,” he added.
Very sensible indeed. It should be pointed out that Mr. Date has left the CFPB and has gained some real-world knowledge of what make fintech companies succeed as a managing partner of a venture firm that focuses on financial services.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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