This month, we are examining some of the consumer issues that have surfaced with these innovative ways to bank. Technology has revolutionized the way consumers interact with the financial system. Older innovations (such as the internet and mobile devices) and newer developments (such as big data and computer algorithms) have changed banks and what we think of as banking: making deposits, taking out loans and managing investments.
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Just as with banks, there is no single licensing or regulatory agency that oversees fintech companies. Depending on their activities, they can be licensed or supervised by local, state or federal regulators on a functional, or activity-based, basis.
On February 18, 2021, Governor Lael Brainard spoke at the at the Institute of International Finance's 2021 IIF U.S. Climate Finance Summit: Financing a Pro Growth Pro Markets Transition to a Sustainable, Low-Carbon Economy. To view her speech on The Role of Financial Institutions in Tackling the Challenges of Climate Change please click the link below.
https://www.federalreserve.gov/newsevents/speech/brainard20210218a.htm
Released by the Board of Governors of the Federal Reserve System
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On February 16, 2021, Governor Michelle Bowman delivered her speech, My Perspective on Bank Regulation and Supervision, at the Conference for Community Bankers sponsored by the American Bankers Association. You can read the speech by clicking the link below.
https://www.federalreserve.gov/newsevents/speech/bowman20210216a.htm
Released by the Board of Governors of the Federal Reserve System
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Although many banks have maintained branch operations in the wake of the COVID-19 pandemic, others have cut back significantly, if temporarily, or announced accelerated plans for permanent closures. This has heightened concerns about an ongoing consolidation of branches nationwide, which has reduced their number by 11% from a peak of 92,030 in 2009.1
Branch closures increase the distance people must travel from where they live, shop, work or otherwise prefer to engage in financial transactions. Those affected sometimes have to go without or must drive long distances to access them. Businesses may be forced to close during the workday to make deposits or withdraw cash in distant cities.2 The elderly, people with mobility issues and those without access to transportation may be particularly inconvenienced.
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