Note from the CEO: Whoa! Anytime we can get our hands on a Federal Reserve opinion we jump on it. Here the San Francisco Fed offers thoughts on how technology is changing the way they look at financial institution supervision and credit. We all know more regulation is coming and this gives a West Coast perspective.
“Financial technology (fintech) is changing the dynamics of banking and how financial institutions deliver their products and services. Lending is one area where fintech has made an impact already according to Tracy Basinger, group vice president of Financial Institution Supervision and Credit (FISC) at the SF Fed.
‘A lot of these so-called ‘marketplace lenders’ developed platforms to deliver loans to consumers. The industry has grown to, as we understand it, well over a hundred such lenders,’ says Basinger.
People have gravitated toward marketplace lenders for ease of use, fewer expenses, and online convenience. Even though the Fed doesn’t regulate these lenders as a general rule, banking regulators are closely watching them and other fintech companies, such as peer-to-peer payment services.”