FinTech and the Regulatory Landscape
When I was in banking, the changing regulatory landscape was a daily challenge. Whether you were tracking written rule updates, peer enforcement actions, “messaging” from key regulators that somehow become law overnight, or simply looking into your crystal ball for guidance from the gods, the goal was to identify regulatory areas of scrutiny that were going to affect your business. Preferably before your business became front-page news.FinTech companies are going through the exact same challenges, but without the benefit from a federal approach to standardize requirements.
The industry manages conflicting state laws, fuzzy legal interpretations and a constant struggle to find market conduct, credit, capital/liquidity, operational, privacy and security compliance expertise to navigate the quagmire of requirements. And all to keep up with businesses growing at warp speed. At the June 23 OCC Forum for Responsible Innovation, one tired FinTech audience member called for help from the OCC to “please just regulate us!” and end the constant re-invention of the wheel.In our ongoing regulatory blog, we’re going to focus on our thoughts around topical regulatory and compliance risk issues in the FinTech lending industry, as articulated by regulators and the broader industry. In some cases, our clients are thinking ahead to addressing these risks through configuring our lending software solutions to operationalize compliance. In other cases, our clients are adopting a “wait-and-see” approach to industry developments.
In all cases, the common denominator is the same: how does compliance become more effective, how can it be automated (read: less human-intensive) and how can it be less intrusive to the business?I look forward to your feedback and questions as we go along. If there are best practices, industry resources or connections to colleagues that I can provide to help your compliance efforts, I’m happy to share my thoughts.