Treasury questions financial inclusion for the fintech industry

Today the U.S. Department of Treasury released a roadmap for regulating financial technology, defining this administration’s policy approach towards the rapidly growing industry. The report encouraged regulatory flexibility and calls for the end of the Consumer Financial Protection Bureau’s payday rule. It also asks the Office of the Comptroller of the Currency to reconsider whether CRA-like obligations are appropriate for the fintech industry.

Jesse Van Tol, CEO of the National Community Reinvestment Coalition, made the following statement:

“Coming out of the financial meltdown, we learned just how important it is to have a uniform financial framework that covers all financial institutions. This includes a new charter to address emerging financial technology companies. Today’s announcement recommends granting fintechs the extraordinary benefits of a national bank charter, including exemption from state interest rate caps, but questions whether a financial inclusion obligation should apply to them. I am concerned that without a level playing field, this industry will spur a race to the bottom in the banking industry. A CRA-like obligation must apply to fintechs, as it does to banks.”

Print Friendly, PDF & Email

Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

Complete the form to download the full report: