On October 23, 2016, CFPB Director Richard Cordray delivered a speech at Money 20/20, focused on how financial innovation can better serve consumers. Cordray noted that the CFPB, as a new agency, feels an affinity towards innovators in finance. Cordray highlighted how FinTech companies and financial institutions are developing products that "cut across" regulatory frameworks and pledged that the CFPB will continue to work with companies to encourage innovation, while ensuring that laws are complied with—he cited enforcement actions the CFPB has taken focused on deceptive conduct, while noting that the agency is not looking to punish actors for "raising novel issues" or questions that fall into "unforeseen cracks in the regulatory framework."
The majority of Cordray's remarks focused on two points: (i) how innovation can facilitate access to financial markets and products to underserved populations and (ii) how technology can help consumers better manage their own finances. He noted that technology is giving customers who remain "locked out" of the traditional banking system options beyond an all-cash economy. He also highlighted automatic or motivational tools that help encourage consumers to save and talked about various CFPB policies, including its no-action letter program that allows programs that hold promise for consumers but would be held back by regulatory uncertainty to proceed for a defined period. Cordray concluded by arguing that the interests the CFPB and FinTech firms are aligned at a deep level, as they both require a focus on service to consumers.
Cordray's remarks are available at: http://www.consumerfinance.gov/about-us/newsroom/prepared-remarks-cfpb-director-richard-cordray-money-2020/.
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