The FTA is already making its voice heard. In July, it was one of the groups that responded to a multiagency request for information on banks’ use of artificial intelligence, including machine learning, in financial services such as credit underwriting.
It said companies that responsibly build around such technologies “can ultimately offer consumers and market participants enhanced and safer products and service offerings, and expand access to financial services to consumers from traditionally underserved communities.”
As long as the enterprises are “subject to appropriate human oversight,” innovation can replace inefficient, manual, costly, time-consuming and subjective processes. The public comments were sought by banking agencies — the Federal Reserve, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and National Credit Union Administration — as fintech becomes more integrated into the financial system.
Lee says FTA will be releasing a policy paper in the next few days on open banking, a broad term that covers data sharing between banks, fintech firms and nonbank payment companies. The group has said open banking “can serve as a catalyst that gives consumers, including those in underserved communities, greater access to their bank data and to additional financial products.”
Lee will run into resistance to the idea that financial technology is always a good thing for consumers.
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