RegTech & Fintech Policy Shift.pdf

This series of six papers argues that new technology can enable most consumers to lead healthier financial lives by protecting them from harm and widening their access to affordable services. Technology-based innovation can be superior to regulation in advancing these goals, and a half-century of traditional U.S. regulation has largely failed. The series recommends revising public policy in two ways: modernizing financial regulation to optimize oversight of innovative fintech and embracing use of regtech, including digitally-native innovative design that restructures regulatory and compliance processes. Practical steps for introducing policy change over time are suggested, enabling empirical testing of outcomes and gradual adoption by industry. The series emphasizes the benefits of digitization, which can make things work better, faster, and cheaper, and enable continuous improvement through further innovation. The papers will be published at intervals, covering topics such as the failures and costs of traditional consumer financial protection regulation, digitizing finance and financial regulation, technology risks, and recommendations for using digitized fintech and regtech to enhance consumer financial inclusion and health.