Regulators monitor FinTechs and Blockchain

The fifth Money2020 conference in Las Vegas held in October 2016 brought together 11,000 delegates eager for information on the new financial techniques and on hundreds of new products and services based on the blockchain.

The Directorate of Consumer Financial Protection Bureau (CFPB) is responsible, under the Dodd-Frank Act, to implement a twenty federal regulations for consumer protection, for all actions relating to student loans, credit cards and all bank documents, including those offered by FinTechs.

The CFPB is open to innovation, yet it seems sometimes act against initiatives favorable to consumers. His power seems to be concentrated in one person, not a committee of several members. And penalties are draconian. The CFPB says that FinTechs companies can offer many services similar to those of the institutions in place, but they must have the same level of guarantee and responsibility than their competitors.

From Britain’s banks have been criticized for not updated their computer systems deemed “archaic and inefficient.” The FinTech technology yet retrieves customer data in order to offer cheaper and faster services.

However, banks are invited to consider before joining Blockchain in their activities. Regulators should ensure that banks do not take new risks in order to save money at the expense of their clients. See also http://click.newsletters.ft.com/

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