Rosenstock Analyzes ‘FinTech’ Regulation for Politico’s Morning Money

In this morning's edition of Politico "Morning Money," Thorn Run's Jason Rosenstock provided an in-depth analysis of the effect Consumer Financial Protection Bureau (CFPB) regulations intended for small-dollar lenders could have on the emerging financial technology, or FinTech, sector. As Rosenstock explains, given increasing attention from Congress and a pending request-for-information from the Department of the Treasury, "the industry is right to think dramatic changes are on the horizon."

"In the near term, legislators, regulators and perhaps the industry itself needs to reconcile whether they are a monolithic entity or separate phalanges of a larger beast," Rosenstock said. "In the interim, it is clear is that their industry competitors from the world of traditional banking are looking for ways to leverage their long standing relationships to apply political pressure that could result in new pressures on the 'FinTech' industry, even if the facts show that some of these online lenders are filling a crucial void for their customers." 
 

Morning Money: Trump looks to lock it down

NEW REGS COMING TO FIN-TECH? – Via Thorn Run Partners' Jason Rosenstock: "The banking industry and those so-called 'FinTech' firms in Silicon Valley and around the country were abuzz last week when the WSJ ran a story about how the CFPB was considering expanding its pending small dollar lending rule to include many of the marketplace and FinTech companies that have been rapidly increasing their market share of the lending industry over the past years. Following on news that three Democratic Senators had written to GAO seeking to update its analysis of the 'FinTech' marketplace and reports of a similar letter by GOP Representative Patrick McHenry and the still pending Treasury RFI, the industry is right to think dramatic changes are on the horizon.

"In the near term, legislators, regulators and perhaps the industry itself needs to reconcile whether they are a monolithic entity or separate phalanges of a larger beast. In the interim, it is clear is that their industry competitors from the world of traditional banking are looking for ways to leverage their long standing relationships to apply political pressure that could result in new pressures on the 'FinTech' industry, even if the facts show that some of these online lenders are filling a crucial void for their customers."