Innovations in financial technology (FinTech) have the potential to fundamentally change the financial services industry and the wider economy. While still early in its evolution, fintech can, for example, promote financial inclusion, expand access to capital for individuals and small businesses, and more broadly reshape how society interacts with financial services. As fintech continues to evolve, stakeholders in this ecosystem – including government and the private sector – must actively participate in its development to ensure growth that maximizes value for the consumer and for the system in a safe and sustainable manner.
Over the past eight years, this Administration has significantly increased opportunities for entrepreneurs and made the United States one of the most innovation-friendly countries in the world.1 Examples of this work include establishing the Open Data Initiative, which unlocked over 200,000 government datasets as raw material for entrepreneurial innovation, the America Invent Act, which makes the U.S. patent system more efficient and responsive to innovators, and the Jumpstart Our Business Startups (JOBS) Act of 2012, which helps small businesses and emerging companies raise capital.2
Consistent with this broader body of work, this Administration has demonstrated a forward-leaning approach to fintech. Executive agencies across the government – including the Department of Commerce (Commerce), the Small Business Administration (SBA), the Department of State (State), the Department of the Treasury (Treasury), the U.S. Agency for International Development (USAID), and others – have engaged with stakeholders across the industry through events, Requests for Information (RFIs), whitepapers, technical assistance and research, and informal outreach and conversations, to better understand the industry and determine the appropriate role for government in fintech development.
At the White House FinTech Summit in June 2016, Cabinet Secretaries and senior officials from across the Administration engaged with stakeholders about the potential for fintech to help further myriad policy goals, including small business access to capital, financial inclusion and health, domestic growth, and international development. At the same event, industry and other stakeholders conveyed the need for a framework that articulates the U.S. government’s perspective on fintech.
This document sets forth Administration policy objectives that reflect widely-shared values and practical expectations for the financial services sector and the U.S. government entities that interact with the sector. It then provides ten overarching principles that constitute a framework policymakers and regulators can use to think about, engage with, and assess the fintech ecosystem in order to meet these policy objectives. Similarly, industry and other stakeholders can use the framework to understand how they can contribute to a well-functioning and inclusive financial system, and to examine their products and services against articulated principles.
This whitepaper is both a product of ongoing public-private cooperation and a roadmap for future collaboration. As the fintech ecosystem continues to evolve, this statement of principles should serve as a resource to guide the development of smart, pragmatic, and innovative cross-sector engagement