How consumers borrow, invest, store, and send money is changing more rapidly than ever before, and the pace of that change is only set to accelerate.
State regulators have always been responsive to changes in the industry, responding to innovations in banking in finance for over 100 years.
But the changes affecting financial services in the past several years are different. Companies and transactions are becoming faster, more complex, and more interconnected than ever before.
So, state regulators adopted a more dynamic and collaborative approach to supervision they call “Networked Supervision.” Networked Supervision is designed to not just respond to changes in the industry, but to proactively improve supervisory tools before they are needed.
Today, I talk to the head of CSBS, the organization tasked with helping states stay ahead of the curve. We discuss what states have been doing the last few years to meet the needs of a changing industry, what companies and consumers can expect out of their regulator in the coming year, and how supervisors are changing their approach to tech to work harder, better, faster, stronger.
- 1:50 - What states achieved the last few years
- 4:42 - What does "Networked Supervision" mean?
- 6:13 - How states are proactive toward industry changes
- 9:03 - The role of federal regulators
- 12:00 - What does an ideal supervisory framework look like?
- 14:19 - Goals in 2021
- 16:45 - Progress so far on 2021 goals
- 19:17 - Why the states? Why not the federal government?