WASHINGTON—The Senate Banking Committee held a hearing during which a number of witnesses suggested fintech companies should be regulated in ways similar to financial institutions.
The credit union trade groups, as well as those representing banks and other institutions, have been advocating for such regulation.
During the hearing, Sen. Catherine Cortez Masto (D-NV) cited a letter that had been sent to the committee by NAFCU that stated “when fintechs compete with regulated financial institutions, they must do so on a level playing field where smart regulations and consumer protections apply to all actors in that space.”
In addition to comments related to regulation, several of the witnesses, who included academics and representatives from private industries and consumer groups, also suggested fintechs should to be accountable for protecting consumer financial data, and that an entity that leaks said data should be the one responsible for making the consumer whole.