Smaller institutions should embrace, not oppose, fintechs
Recently, community bank and credit union groups have initiated efforts to use their lobbying influence in Washington to restrict the growth and aspirations of innovative fintech firms. Their arguments, however, amount to the old regulatory Catch-22.
On the one hand, they claim that fintech firms are currentlygetting a lighter touchfrom regulators. This is just not true - the consumer protection laws and regulation that apply to bank or credit union loans also govern fintech loans.