There’s a lot to process in this week’s edition of Fintech Friday. Especially when forces are joined and a caveat is issued.
There’s even some news about consumer protection sprinkled in this week’s U.S. fintech headlines. Check it out:
Forces joined: Aiming to end that cycle and to prevent their banks from becoming irrelevant, a group of a dozen community and regional banks, with the help of consulting firm FinTech Forge, have created a consortium that will work with financial technology startups to develop products and services that meet the digital needs of their customers. (Source: Forbes)
Caveat: With the above in mind, American Banker wrote a story with a warning for small banks not to over-rely on fintech partnerships. (Source: American Banker)
Consumer protection: “Fintech sandboxes” are all the rage. The Consumer Financial Protection Bureau (CFPB) recently proposed a disclosure sandbox, the Arizona attorney general has adopted a fintech sandbox, and both legislators and regulators in Washington are discussing ways to use sandboxes to promote financial innovation. A sandbox is a safe place to play, outside of the real world, and outside of real-world rules. Sandboxes are great for little children. But letting companies “play” in the real world, taking real money from real people and exposing consumers to real risks without following the rules, is not child’s play, writes Lauren Saunders. (Source: The Hill)
Note: Every Friday, BBVA Compass, a leader in the U.S. digital banking revolution, publishes its weekly Fintech Friday article, giving you headlines you might have missed in the world of fintech across the country.