The fintech world is growing fast, and that comes with plenty of opportunities and challenges for regulators, banks and advocates.
We hosted a panel discussion Thursday on the future of fintech and state government’s role at the Punchbowl News HQ during the Congressional Black Caucus Foundation Annual Legislative Conference. The panel was made up of Nevada Attorney General Aaron Ford, National Bankers Association President and CEO Nicole Elam and Yasmin Salina, co-founder and executive director of The Hustlers Guild.
Banking and fintech: Elam, whose organization represents minority depository institutions, said fintech is changing the landscape and allowing such banks to increase their digital offerings, streamline their operations and enhance customer experiences.
“Our customers are demanding to be able to do everything on their phone. Well, that requires fintechs and advanced technology solutions,” Elam said, adding that MDIs have to leverage technology to remain competitive.
Elam also said a survey of members of the National Bankers Association, which are minority-owned and operated banks, found that 69% wanted to leverage fintech, and just 23% were actively pursuing fintech partnerships, due to costs and regulatory concerns.
The regulatory balancing act: Fintech is quickly evolving with implications for consumers. Regulators have to balance the need to protect customers with the need to boost innovation.
Ford cited emerging rules for earned wage access as an example of a regulatory area that stakeholders are grappling with. Ford said a recent proposal from the Consumer Financial Protection Bureau for regulating earned wage access products goes too far, even though he typically aligns with the agency. The CFPB rule would treat earned wage access as loans and would require similar stringent disclosures.
“That’s too onerous from my perspective,” Ford said. “And certainly in the context of emerging technologies and financial technologies arena, finding out ways in which to stand with consumers to protect them… but also recognizing the need for innovation, for these for these technologies that come in that disrupt things.”
Fintech and financial literacy: Salina, whose organization, The Hustlers Guild, provides opportunities and mentorship to at-risk youth, said fintech has become important for financial literacy education with the young people she serves.
“A lot of our kids’ families are still going to check-cashing places in their neighborhoods and these are the pioneers now to the digital world for them,” Salina said. She added that the organization uses the interests of the young people to connect them to the fintech world.
Ambassadors roundtable: We also sat down for a special discussion featuring four current and past Punchbowl News CBC ambassadors.
This year’s ambassadors included: Pamela Alexander, managing director, head of corporate citizenship at KKR, Emily Hawkins, founder of The Black Tech Collective, Crystal Carson, communications director for First Lady Michelle Obama, and Vincent Evans, executive director of the Congressional Black Caucus.
The panelists discussed their career trajectories and the barriers to uplifting communities of color. The ambassadors also shared their ideas on how to help the next generation of leaders in their respective industries.
Their ideas included financial literacy, boosting the economy and education.
“If we’re thinking about creating a generation that’s better than we are right now and we’re thinking ahead and not just in this moment, the best way to create a society of whole people, of accepting people, is to work on our education system,” Carson said.
Hawkins suggested that narrowing the digital divide would go a long way, including making the internet more accessible.
“Because you can’t even get to the starting line for a race if you — regardless of background, socioeconomic status — if you don’t have access to the tools of technology like the internet,” Hawkins added.
You can watch the full ambassador conversation here.
ICYMI: If you missed our earlier talk with Rep. Greg Meeks (D-N.Y.), you can watch the full conversation here.
And if you weren’t able to join us in person, you can watch the highlights from our Punchbowl News HQ at the CBCF ALC here.
