Financial Innovation & Regulation–Finding the Balance

Over the past two years, the Consumer Financial Protection Bureau, along with other federal financial regulators, has intensified its efforts to better understand innovation in the financial services industry. They have worked to develop policies aimed to foster continuing innovation and reducing regulatory uncertainty. These policies–which authorize product and disclosure sandboxes, no-action letters, and advisory opinions, among other items–provide both traditional banks and credit unions, as well as fintech companies, opportunities to test new products and services under defined conditions without fear of legal liability.