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The recent Republican sweep of the White House and Congress has sparked debates about deregulation and reshaping financial oversight. Yet inconsistent regulatory approaches have stifled the full potential of financial technology (fintech) products such as earned wage access, mobile wallets, and fintech debit accounts.
Five federal financial regulatory agencies are encouraging banks, savings associations and credit unions to offer small loans to consumers and small businesses in response to the coronavirus pandemic.
I am not here to criticize the seemingly more aggressive approach the ConsumerFinancialProtectionBureau (CFPB) has taken during the last year, nor will I use this opportunity to question the substance of the myriad proposals the CFPB has released during the past six months.
The landscape and ongoing tug: As new payment models like Buy Now, Pay Later (BNPL) and EWA took off in recent years, the ConsumerFinancialProtectionBureau (CFPB) has been watching how they affect consumers. 7428 in 2024, which classifies EWA as a non-credit product with consumerprotections.
These include eliminating the proprietary trading restrictions of the ‘Volcker’ Rule, major changes to the Financial Stability Oversight Council and the diminished authority and independence of the ConsumerFinancialProtectionBureau (CFPB). And now there is even more on Congress’s plate.
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