For Fintech and Non-Bank Regulation
“Through Vision 2020, state regulators will transform the licensing process, harmonize supervision, engage fintech companies, assist state banking departments, make it easier for banks to provide services to non-banks, and make supervision more efficient for third parties.”
~ Texas Commissioner Charles G. Cooper
Fintechs are now integrated into daily life.
Fintech companies - firms that leverages technology to create new business models, new delivery channels, automated decisions, and partnerships with traditional banks - perform an important role in financial services. Operating industries such as mortgages, money transmission, debt, and consumer finance, fintech firms have piqued the interest of consumers and attracted a wide range of investors.
State regulators, who are the primary regulators of non-bank and fintech firms, are committed to fostering the innovation of fintech companies while protecting consumers from predatory products and services.
When speaking with fintech companies, state regulators heard some common challenges faced when looking when getting licensed. Fintech companies are looking for a more streamlined licensing process, more clarity on if and where they need licenses, and more freedom to try out new and innovative ideas.
State regulators have taken notice.
"We have a problem with the volume, complexity, and overall approach of our regulatory framework." - Texas Commissioner Charles G. Cooper— CSBS (@CSBSNews) June 22, 2017
State regulators are uniquely positioned to best supervise fintech firms in a meaningful and effective manner. Based on feedback from fintech firms, state regulators have identified several common goals shared between regulators and the industry that will help guide improvements to the state supervisory process.
Building off these goals, state regulators launched Vision 2020, an initiative to modernize state regulation of non-bank financial companies.
The Path Forward for State Regulation
Vision 2020 consists of six major initiatives to be completed over the next several years.