The international group of regulators called the Global Financial Innovation Network (GFIN) has expanded to 29 countries and is inviting...
Chapman and Cutler provide insight on regulation in marketplace lending in their annual survey publication titled, "The Regulation of Marketplace Lending: A Summary of the Principal Issues"; covers a wide range of marketplace lending regulatory aspects for consideration; includes court case rulings and government involvement; also provides details on the status of marketplace loans as securities, applicable securities laws and more. Source
As you may know every loan on both Lending Club and Prosper is a security that is registered with the...
The Economist magazine's intelligence unit (EIU) has published a report on regulatory support for financial inclusion in developing countries and it is now gaining traction with press and analysts; the report scores countries on having an inclusiveness strategy and building governmental and private sector expertise, then provides in-depth details in areas including credit markets, non-regulated lenders, payments and insurance; Colombia ties Peru this year for the most progressive country; India has shown the most improvement; Latin America and East/South Asia are leaders regionally while Africa and the Middle East remain behind; the EIU performed the research in conjunction with the Center for Financial Inclusion at Accion and the Multilateral Investment Fund at the Inter-American Development Bank. Source
Colorado passed a law this week that could have a dramatic effect on the ability of fintech lenders to do business in the state.
In an interview with CNBC, Ning Tang, CEO of CreditEase, provides insight on the China Banking Regulatory Commission’s regulation for China’s P2P lending industry; says the regulation will have positive long-term affects; focuses on the requirement of P2P lenders to work with banks as a custodian and says CreditEase has complied with this requirement for many years. Source
'We have the emergence of great innovation, but it's often in highly regulated industries, where regulators only have very blunt instruments to support that.'
The last day of the year is normally pretty quiet as far as news goes but LendingClub had two major...
Regulators have traditionally responded to bad actors in financial innovation by attacking the underlying technology versus those wielding it as a weapon.
With the recent news from the OCC and a new administration in Washington, regulation of fintech is top of mind for everyone in the industry. The president of the San Francisco Fed, John C. Williams, joined us at LendIt USA 2016 to discuss fintech regulation in his keynote address.
He believes right now is a critically important time to have an open and honest dialogue about fintech and its role in the financial system. Fintech holds a lot of promise, it can help to improve efficiencies in the current system and can help the overall economy be more successful in achieving its fundamental goals.
The laws of innovation often mirror the laws of physics, for every great stride there is an equal and opposite risk. While he discussed the fact that innovation holds a lot of potential, the regulatory structure needs to asses the risks and ensure correct protections are in place.
Fintech companies are currently lowering costs, increasing access to the underbanked and helping to revitalize impoverished neighborhoods. One of his biggest points was even though fintech is looking to help the impoverished, it can actually hurt them the most as bad actors will prey upon the vulnerable.
Williams covers vigilance and a level playing field, looking at how the industry can help improve many different facets of the financial system but at the same time ensuring those in this burgeoning market do not pose a risk to the financial system. As he was beginning to wrap up his speech to allow for an interactive Q&A with the audience, Mr. Williams said he sees the potency of the possible in fintech.
Check out the full video here: