House Financial Services Committee Announces New Task Force on Fintech

Congresswoman Maxine Waters (D-CA), chairwoman of the House Financial Services Committee, announced on May 9 the creation of a new task force on financial technology (fintech).

According to the press release, the task force will specifically examine the following issues:

• Regulating Fintech: Domestic and International Perspectives
• Fintech Lending and New Inputs: Utilizing Alternative Data for Loan Underwriting and Modifications
• Fintech and Consumers: Assessing the Infrastructure and Legal and Regulatory Framework for Efficient Payments
• Fintech and Big Data: Reviewing Challenges to Data Privacy

Fintech has grown rapidly over the past several years. A recent report found that personal loan balances reached a record $138 billion last year. Fintech firms captured only five percent of this market in 2013, but by 2018, the industry captured 38 percent. Congress has struggled to keep up.

“As new technologies emerge and the financial services industry puts those technologies to use, Congress must make sure that responsible innovation is encouraged, and that regulators and the law are adapting to the changing landscape to best protect consumers, investors and small businesses,” said Waters. “The new task forces…will help Congress to stay on top of new developments in these areas so that we are well-positioned to make policy.”

Congressman Stephen Lynch (D-MA) will lead the fintech task force. “The lives of consumers are changing with user-friendly financial service apps but these emerging technologies come with vulnerabilities and the need to reevaluate our consumer protection standards,” said Lynch. “As we explore the future of financial services, this bipartisan task force will give us the opportunity to educate Congress on the opportunities and challenges posed by these technologies and what we can do to produce the best outcomes for consumers.”