Government agencies are quickly trying to latch onto financial technology (Fintech) opportunities to understand the growing impact on financial services and small businesses. White House officials, along with federal regulators, met for a half day event to identify ways to promote and regulate rapidly evolving Fintech innovation, which encompasses digital currency, online lending and payment services. 

The “Fintech Summit”, led by Adrienne Harris, Special Assistant to the President for Economic Policy, was a closed door event for participants from a broad cross-section of the Fintech community.  Ms. Harris’s blog touted the summit saying, “technology is changing the way consumers relate to their finances, and the way institutions function in our financial system” and signifies Washington’s effort to stay abreast of innovation in financial services.

Attendees included Fintech firms, both established and startups, financial services firms, investors, policy makers and government officials.  The event was conducted through a series of panels.  One noteworthy discussion analyzed Fintech firm capacity to scale and properly deliver services that are stable, properly resourced and “advance our nation’s economic competitiveness".

Big data was another panel topic, piggy-backing May’s White House report on fraud prevention and access to credit for the underserved.  The discussion focused on big data risk from a privacy and civil rights viewpoint, warning of issues that skew demographic data.  One of several other panels addressed how small and medium businesses (SMEs), as a key component of the economy, can access Fintech benefits through marketplace lending. 

This discussion was led by the Small Business Administration (SBA) and the US Department of the Treasury (DOT).  The various panel discussions focused on creating public and private sector partnerships to “advance financial well-being and economic prosperity." 

Taking a Washington view during a CNBC broadcast, venture capitalist Charles Moldow warned of increasing regulation for marketplace lending start-ups.  Noting that as many consumers are turned down by traditional lenders, they seek out alternatives to include Fintech firms. 

Despite the current lack of regulatory oversight, these products are fundamentally good and simply require governance. Mr. Moldow added his sentiments that the White House’s position was “positive in terms of trying to embrace innovation”; however, regulators appeared to be focused on “what’s going wrong rather than what’s going right."  

Regardless, the summit illustrated a lean towards discussion and understanding of Fintech opportunities, as well as the government's support through expanded policy.  It will be interesting to see how the framework unfolds amidst a changing administration.

Irrespective of impending regulation, more traditional lending shops will need to stay on top of technology to contend with the growing Fintech sector.  Incorporating easily accessible (mobile) interactive workflow solutions provided by vendors that understand regulatory impact and disruption is the key to achieving a competitive foothold in today’s market. 

Jane Mason

CEO and Founder

Jane has applied her vast experience (over 25 years) operating process-driven businesses to successfully redefine client-focused service. Jane has worked with expert programmers to apply cutting-edge web-based technology to automate complex processes in both the financial services and healthcare industries. Her vision confirms Clarifire's trajectory as a successful, scaling, Software-as-a-Service (SaaS) provider. A University of South Florida graduate and has received many awards related to her entrepreneurial skills.