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C. TODAY
WHY Fintech
Needs the Right
Regulation to Help
Drive Innovation
By TOM QUAADMAN, U.S. Chamber of Commerce
You probably use cash a lot less than you did 10 million small businesses weather the pandemic,
years ago, and writing personal checks is a less shows the growing power of non-bank lending. The
frequently used form of payment as well. Overall, you Federal Reserve Bank of New York recently issued
may use your wallet a lot less — and your smartphone a report showing that although a small share of the
a lot more — to make payments, send funds, and buy total, fintech lenders likely served borrowers who
goods online. We’ve come a long way in a short time. would not have received these loans otherwise.
Some think of fintech (financial technology) only as Seeking guidance
something complicated involving cryptocurrencies
like Bitcoin, but for many, the future of payment The rapid rate of change coupled with the potential
technologies is already here. Peer-to-peer payment benefits of fintech innovation makes it critical that
— using a smartphone or computer to send companies have clear standards to follow, and for
payments — is a familiar example. With a click fintech to be used correctly and safely, it needs the
of a button and an email address, you can send right oversight and direction. The absence of a clear
payments to anyone around the globe. and easy-to-navigate regulatory framework places
fintech innovators in a regulatory maze with more
Growing around the globe dead ends than paths for approval, and America risks
losing those entrepreneurs to other countries that are
Contactless payment and digital currencies are establishing pro-innovation regulatory frameworks.
promising technologies that are expanding both in
the United States and internationally. Many point- One thing is certain: if the United States doesn’t
of-sale systems rely on a wireless chip instead of a move ahead with fintech innovations, others
customer physically swiping their card. Recently, will. We need sensible, flexible fintech regulation
China made headlines by introducing a pilot program that takes into consideration existing and future
for its own digital currency. America has been more technological innovation based on transparent rules
cautious, however, and U.S. Federal Reserve Board that will promote innovation, protect consumers,
Chair Jerome Powell recently announced that the and create the framework for a 21st-century
Federal Reserve will soon issue a study on the merits financial payments system.
of issuing an American digital currency.
The fintech revolution is
Online non-bank lenders have also had a notable happening now — it’s time to act.
role in the fintech revolution. Before advancements
in financial technologies, consumers and businesses
seeking funds would have to go to a physical bank, fill
out paperwork, and wait to hear back about the loan
amount and terms. Now, all of this can be done online.
The Small Business Administration’s Paycheck
Protection Program (PPP), which helped over 8
25 AMCHAM SOUTH CHINA
WHY Fintech
Needs the Right
Regulation to Help
Drive Innovation
By TOM QUAADMAN, U.S. Chamber of Commerce
You probably use cash a lot less than you did 10 million small businesses weather the pandemic,
years ago, and writing personal checks is a less shows the growing power of non-bank lending. The
frequently used form of payment as well. Overall, you Federal Reserve Bank of New York recently issued
may use your wallet a lot less — and your smartphone a report showing that although a small share of the
a lot more — to make payments, send funds, and buy total, fintech lenders likely served borrowers who
goods online. We’ve come a long way in a short time. would not have received these loans otherwise.
Some think of fintech (financial technology) only as Seeking guidance
something complicated involving cryptocurrencies
like Bitcoin, but for many, the future of payment The rapid rate of change coupled with the potential
technologies is already here. Peer-to-peer payment benefits of fintech innovation makes it critical that
— using a smartphone or computer to send companies have clear standards to follow, and for
payments — is a familiar example. With a click fintech to be used correctly and safely, it needs the
of a button and an email address, you can send right oversight and direction. The absence of a clear
payments to anyone around the globe. and easy-to-navigate regulatory framework places
fintech innovators in a regulatory maze with more
Growing around the globe dead ends than paths for approval, and America risks
losing those entrepreneurs to other countries that are
Contactless payment and digital currencies are establishing pro-innovation regulatory frameworks.
promising technologies that are expanding both in
the United States and internationally. Many point- One thing is certain: if the United States doesn’t
of-sale systems rely on a wireless chip instead of a move ahead with fintech innovations, others
customer physically swiping their card. Recently, will. We need sensible, flexible fintech regulation
China made headlines by introducing a pilot program that takes into consideration existing and future
for its own digital currency. America has been more technological innovation based on transparent rules
cautious, however, and U.S. Federal Reserve Board that will promote innovation, protect consumers,
Chair Jerome Powell recently announced that the and create the framework for a 21st-century
Federal Reserve will soon issue a study on the merits financial payments system.
of issuing an American digital currency.
The fintech revolution is
Online non-bank lenders have also had a notable happening now — it’s time to act.
role in the fintech revolution. Before advancements
in financial technologies, consumers and businesses
seeking funds would have to go to a physical bank, fill
out paperwork, and wait to hear back about the loan
amount and terms. Now, all of this can be done online.
The Small Business Administration’s Paycheck
Protection Program (PPP), which helped over 8
25 AMCHAM SOUTH CHINA
