Technology and Emerging Issues

The varied landscape of financial technology is not easily defined. Fintech is everywhere: in smartphones, data aggregation services, underwriting algorithms and credit scoring systems, to name just a few examples.

Despite growing interest in establishing a workable regulatory framework for fintech, neither Congress nor federal banking agencies have supplied a concrete definition for the term. In popular usage “fintech” connotes virtually any financial product or service that is powered by software or delivered electronically. Fintech includes not only well-established technologies subject to specific rules—like credit cards and electronic signatures—but also cutting edge applications, such as cryptocurrencies and artificial intelligence (AI). Regulators need to work together to allow financial institutions of all types to leverage new technologies for the benefit of their customers, and to prevent under-scrutinized entities from taking advantage of regulatory gaps and posing a threat to consumers and the financial services industry.