April 20, 2017
This week, the Government Accountability Office released its report entitled, "Financial Technology: Information on Subsectors and Regulatory Oversight."
The report, written in response to an information request from Democratic members of the Senate Banking Committee, focuses on four key subsectors of the fintech industry: (1) marketplace lenders; (2) mobile payments; (3) online wealth management platforms; and (4) the use of blockchain technology. The GAO explained that because there is no universal definition of "fintech," the report focuses on the subsectors identified in its interviews with federal and state banking regulators.
The report highlights the existing federal and state laws applicable to each subsector of products and services. The GAO did not provide recommendations for future supervision or regulation of the industry. Instead, the report provides an overview of existing federal and state oversight activities and an explanation of the most prevalent fintech products and services.
The GAO noted that fintech products and services offer the potential to expand access to financial services to individuals previously underserved by traditional financial institutions. In particular, the GAO noted positive trends for financial products, including small business financing, student loan refinancing, mobile wallets, virtual currencies, and platforms to connect investors and start-ups.