Trade Group Forms To Promote FinTech Development, Regs

A new trade group formed by FinTech leaders called the Financial Technology Association (FTA) launched Wednesday (March 10), according to a press release.

Afterpay is a founding member alongside Betterment, Brex, Carta, Figure, Marqeta, Quadpay, Plaid, Ribbit Capital, Wise and Zest AI, the release noted.

The release stated the group will “educate stakeholders and support the modernization of financial regulation to drive greater financial inclusion, equity and opportunity.”

The group stated in the release that it believes in the successful integration of FinTech in America, which starts with the adoption of national policies recognizing the importance of responsible innovation.

Some of the group’s key priorities, according to the release, include:

Safeguarding consumers and promoting financial education and literacy;

Providing fair, accessible and transparent financial services to consumers, including marginalized and underserved communities;

Championing the role of the U.S. and its norms in the global financial ecosystem;

Encouraging responsible and equitable private sector innovation and competition; and,

Further upgrading the national financial infrastructure.

In addition, the group rolled out an introductory paper, “Shaping the Future of Finance,” which demonstrates that the FinTech companies are working on efficiency and transparency, as well as widening equity, access and inclusion, according to the release. The group wants to boost choice and reduce costs using internet, mobile platforms, machine learning, automated platforms and other modern innovations.

In the introductory paper, the group outlined a “north star” concept that stated “safeguarding, empowering and advancing consumer and end-user interests” should be the center of policy formations, the release stated. Good policy should come through customer protections, a fostering of innovative business models and access to safe, inclusive products and services.

Financial literacy is also the goal of apps like Wally, Mint, YouNeedABudget and Acorns, along with numerous banking programs, which have tried to instill saving and budgeting habits, PYMNTS reported. The apps generally encourage consumers to design budgets for how they want to spend and save.