“The Fintech Future Coalition was created under the shared belief that responsible Fintech can provide opportunity and access to financial services for all communities. While some use financial technology in irresponsible and predatory ways, regulatory compliance and consumer protection are at the core of everything we stand for. We thank Chairman Clyburn, the members of the committee, and its staff for their diligent work on this report and support any and all efforts to root out fraud, waste, and abuse in the PPP program and across the government and financial services sector. This is a thorough and comprehensive report that clearly shows the benefits of partnering with innovative fintech companies who are committed to transparency, accountability, and regulation and the risks when bad actors try to take advantage of the system.”

The responsible fintech community in conjunction with willing financial institutions stepped up in the wake of the COVID-19 pandemic and broke down traditional barriers to capital to ensure millions of Americans could easily and responsibly access the resources they desperately needed to keep their families and businesses afloat.

• Federal Reserve Bank of San Francisco research found that fintech lenders were critical to delivering PPP loans to underrepresented populations including Black-owned businesses during the pandemic. The research indicates that about 1 in 4 Black-owned companies applied with fintech lenders.
• According to research from the Federal Reserve Bank of New York, 95% of large bank applications came from applicants who had an existing relationship with a bank. Fintech lenders were able to bridge the gap and provide financial support to underserved applicants, particularly those without a direct relationship.

Today's findings demonstrate the clear difference between “unregulated” (fintechs without a bank charter, bank partnership, or appropriate oversight) and regulated, chartered banks that prudently partnered with nonbank fintech companies.

• For example, the report specifically praises Blue vine, a fintech that partnered with a bank-chartered entity finding that “although initially observing high levels of fraud, Blue vine appears to have adapted to ongoing fraud threats better than Kabbage, Womply, and Blueacorn, likely due to its long-established partnership with a traditional financial institution that pressed the fintech to make appropriate investments in fraud controls and to comply with Small Business Administration (SBA) standards.”

Through advocacy, public policy, and coalition building, Fintech Future is committed to working with community leaders and organizations, government partners, and regulators to support equal access to financial services while supporting policies and efforts that ensure the highest levels of compliance, accountability, and consumer protection.

Today’s report is a step to both bring accountability to bad actors but also chart a path toward regulation and oversight that promote innovation and protect all Americans' right to access the capital they need to achieve their dreams.

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For more information visit: https://www.fintechfuturecoalition.org

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