Financial Technology (Fintech)

TechNet promotes the banking and financial technology (fintech) sectors by removing regulatory barriers to financial access and literacy, economic growth, and job creation.  TechNet supports innovation in the banking and fintech sectors by encouraging state policymakers to ensure the regulatory system remains technology-neutral and regulates new technologies, including digital currencies and alternative banking, using a balanced approach that encourages fair competition and promotes access to competitive financial services.

TechNet supports private sector efforts to provide consumers with new, safe, secure, reliable, and accessible financial tools.  In particular, the state program supports the following principles:

Financing Reforms

• Policymakers should prioritize updating antiquated state regulations to remove barriers to an integrated, digital transaction by addressing the role of technology in enabling constant change, diversity, and innovation in financing.
• Policymakers should encourage and advance financing laws and regulations across jurisdictions that account for and preserve access to the innovative lending market of today, oppose adding fees or additional requirements to global transactions, and authorize the use of digital tools such as e-signatures, remote online notarization, and automated valuation models to promote efficient, streamlined financial transactions.
• Policymakers should promote industry best practices that protect consumers and small businesses, such as transparent disclosures, without inhibiting innovation in providing access to credit.

 Financial Empowerment

• Leverage technology to reduce barriers to financial literacy and services and empower consumers and small businesses to better manage their financial lives.
• Unlock the power of financial apps.  Policymakers should empower consumers and small businesses to take advantage of financial apps on their smartphones that improve security and offer reliable convenience and give unbanked and underbanked persons opportunity to build credit.
• Unlock access and promote education and training of digital tools that improve financial literacy for all consumers and small businesses. 

Payment Systems

• Enhanced security and convenience through continuous innovation.  No one technology should be mandated for security and authentication, nor should one technology become a de facto mandate through “floor-setting.”
• Promote new entrants and empower consumers and small businesses to utilize a broad array of fintech products and solutions.
• Promote the adoption of and oppose restrictions on card and mobile retail.
• Reduce fraud in the financial industry by empowering innovators.
• Promote free market growth of the payments industry to provide consumers and small businesses with secure and efficient payment options, and defend it against market-controlling legislative and regulatory policies.

Digital Assets, Blockchain Technology, and Web3

• Encourage policymakers to take a measured approach toward digital assets, blockchain technology, and Web3 through legislative proposals that conduct studies of these emerging technologies amongst key state regulators where policymakers can first develop a fact basis for understanding the costs and benefits of emerging technologies and only seek to regulate to fill gaps in existing law.
• Encourage states to adopt the Conference of State Bank Supervisors’ Money Transmission Modernization Act (MTMA), a model law drafted with the goal of creating a single set of modernized nationwide standards and requirements.
• Identify the benefits that would accrue to state governmental operations by incorporating digital assets, blockchain technology, and other emerging technologies into how citizens interact with state government.
• Promote cooperation across state securities regulators, other state financial regulators, and state attorneys general to prevent a patchwork of inconsistent state regulations that could stifle innovation.