The Consumer Financial Protection Bureau (CFPB) released a report Monday (Oct. 24) showcasing several market developments that could help consumers. In its report, dubbed “Project Catalyst report: Promoting consumer friendly innovation,” the CFPB said developments from FinTech startups, as well as traditional financial services companies, are creating new innovations that will benefit consumers.
“Innovation has enormous potential to improve the financial lives of consumers,” said CFPB Director Richard Cordray in the report. “At the same time, market developments cannot skirt the need for strong consumer protection. Through Project Catalyst and other bureau activities, we are working to expand our own knowledge and to foster a consumer financial marketplace where emerging products can be developed that are safe and beneficial for consumers.”
According to the CFPB, evolving technologies are driving fast-paced change in the financial marketplace that not only poses benefits for consumers but also creates risks. As a result, the CFPB wants to create an environment where emerging products are safe and benefit the consumer. The CFPB said one of the main goals of the new project is to work with companies, startups and others who are innovating in the financial services sector. By working with the companies, the CFPB said it can better understand emerging technologies and products and what makes sense for consumers and what may harm them. Through its outreach, the CFPB said it found a host of areas where innovation can play a role. Some of those include increased access to credit, support for safer consumer financial record access, increased cash flow management, more options for student loan refinancing, modernized serving platforms, modernized mortgage servicing platforms and improved credit reporting engagement. The CFPB also sees room for improving credit reporting engagement, improving peer-to-peer money transfers and helping consumers to save.