The U.S. Treasury is calling for sweeping changes in fin-tech consumer protections, including an increased control given to consumers over their data and a national data breach notification standard.
The agency also called for the embracing of efficient and responsible use of consumer financial data and competitive technologies, according to a July 31 report.
The report also seeks to address the longstanding tug of war with consumer data aggregators as banks have traditionally throttled access by aggregators with those in the financial sectors arguing the practice poses cybersecurity risks, while aggregators argue that some banks are more concerned about competition for customers.
“Creating a regulatory environment that supports responsible innovation is crucial for economic growth and success, particularly in the financial sector,” Secretary Steven T. Mnuchin said in the release. “America is a leader in innovation. We must keep pace with industry changes and encourage financial ingenuity to foster the nation's vibrant financial services and technology sectors.”
The agency also called for regulatory sandboxes which would allow companies to push the current legal boundaries of what's acceptable.