A Financial System That Creates Economic Opportunities ...
U.S. D E PARTM E NT O F TH E TR EAS U RY
A Financial System That Creates Economic Opportunities Nonbank Financials, Fintech, and Innovation
JULY 2018
U.S. D E PARTM E NT O F TH E TR EAS U RY
A Financial System That Creates Economic Opportunities
Nonbank Financials, Fintech, and Innovation
Report to President Donald J. Trump Executive Order 13772 on Core Principles for Regulating the United States Financial System
Steven T. Mnuchin Secretary
Craig S. Phillips Counselor to the Secretary
MENT OF THE
1789
THE DEPART
TREASURY
Staff Acknowledgments
Secretary Mnuchin and Counselor Phillips would like to thank Treasury staff members for their contributions to this report. The staff's work on the report was led by Jessica Renier and W. Moses Kim, and included contributions from Chloe Cabot, Dan Dorman, Alexandra Friedman, Eric Froman, Dan Greenland, Gerry Hughes, Alexander Jackson, Danielle Johnson-Kutch, Ben Lachmann, Natalia Li, Daniel McCarty, John McGrail, Amyn Moolji, Brian Morgenstern, Daren Small-Moyers, Mark Nelson, Peter Nickoloff, Bimal Patel, Brian Peretti, Scott Rembrandt, Ed Roback, Ranya Rotolo, Jared Sawyer, Steven Seitz, Brian Smith, Mark Uyeda, Anne Wallwork, and Christopher Weaver.
ii
A Financial System That Creates Economic Opportunities ? Nonbank Financials, Fintech, and Innovation
Table of Contents
Executive Summary
1
Nonbank Financials, Fintech, and Innovation 4
Emerging Trends in Financial Intermediation 6
Summary of Issues and Recommendations 9
Embracing Digitization, Data, and Technology
15
Digitization17
Consumer Financial Data 22
The Potential of Scale 44
Aligning the Regulatory Framework to Promote Innovation
61
Challenges with State and Federal Regulatory Frameworks 63
Modernizing Regulatory Frameworks for National Activities 66
Updating Activity-Specific Regulations
81
Lending and Servicing 83
Payments144 Wealth Management and Digital Financial Planning 159
Enabling the Policy Environment
165
Agile and Effective Regulation for a 21st Century Economy 167
International Approaches and Considerations 177
Appendices
Appendix A: Participants in the Executive Order Engagement Process 187
Appendix B: Table of Recommendations 195 Appendix C: Additional Background 213
A Financial System That Creates Economic Opportunities ? Nonbank Financials, Fintech, and Innovation iii
Acronyms and Abbreviations
Acronym/Abbreviation Term
ABA
American Bankers Association
ACH
Automated Clearing House
AI
Artificial Intelligence
AMC
Appraisal Management Company
AML
Anti-Money Laundering
API
Application Programming Interface
APR
Annual Percentage Rate
AQB
Appraiser Qualifications Board
ASB
Appraisal Standards Board
ATM
Automated Teller Machine
AVM
Automated Valuation Model
BHC
Bank Holding Company
BHC Act
Bank Holding Company Act
BSA
Bank Secrecy Act
Bureau
Bureau of Consumer Financial Protection
CEG
Cybersecurity Expert Group
C.F.R.
Code of Federal Regulations
CFT
Countering the Financing of Terrorism
CFTC
U.S. Commodity Futures Trading Commission
CHAPS
Clearing House Automated Payment System
CHIPS
Clearing House Interbank Payments System
CMA
Competition and Markets Authority (U.K.)
CRA
Community Reinvestment Act
CROA
Credit Repair Organizations Act
CSBS
Conference of State Bank Supervisors
Cyber Apex
Next Generation Cyber Infrastructure Apex Program
DARPA
Defense Advanced Research Projects Agency
DHS
U.S. Department of Homeland Security
DIUx
Defense Innovation Unit Experimental
iv A Financial System That Creates Economic Opportunities ? Nonbank Financials, Fintech, and Innovation
DLT DOD Dodd-Frank DOJ DOL Education EMV ESIGN E.U. FATF FBIIC FCA FCA FCC FCRA FDCPA FDIC FedACH FFIEC FHA FHA-HAMP FHFA FHLB FICO FIL FinCEN FINRA Fintech FIRREA FlexMod FPS
Distributed Ledger Technology U.S. Department of Defense Dodd-Frank Wall Street Reform and Consumer Protection Act U.S. Department of Justice U.S. Department of Labor U.S. Department of Education Europay, Mastercard, and Visa Electronic Signatures in Global and National Commerce Act European Union Financial Action Task Force Financial and Banking Information Infrastructure Committee False Claims Act U.K. Financial Conduct Authority Federal Communications Commission Fair Credit Reporting Act Fair Debt Collection Practices Act Federal Deposit Insurance Corporation Federal Reserve Banks' Automated Clearing House Federal Financial Institutions Examination Council Federal Housing Administration FHA Home Affordable Modification Program Federal Housing Finance Agency Federal Home Loan Bank Fair Isaac Corporation Financial Institutions Letter Financial Crimes Enforcement Network Financial Industry Regulatory Authority Financial Technology Financial Institutions Reform, Recovery, and Enforcement Act GSE Flex Modification Faster Payments Service (U.K.)
A Financial System That Creates Economic Opportunities ? Nonbank Financials, Fintech, and Innovation
v
FRB FRBNY FSB FS-ISAC FTC G-7 G20 GAO GDP GDPR GLBA GRC GSE HUD IaaS IRS ISO IT LOA MAS MBA MBS MCSBA MERS MMIF MPL MSB MTRA NACHA NAIC NBA
Board of Governors of the Federal Reserve System Federal Reserve Bank of New York Financial Stability Board Financial Services Information Sharing and Analysis Center Federal Trade Commission Group of 7 Group of 20 U.S. Government Accountability Office Gross Domestic Product General Data Protection Regulation (E.U.) Gramm-Leach-Bliley Act Governance, Risk and Compliance Government-Sponsored Enterprise U.S. Department of Housing and Urban Development Infrastructure as a Service Internal Revenue Service International Organization for Standardization Information Technology Levels of Assurance Monetary Authority of Singapore Mortgage Bankers Association Mortgage-Backed Securities Maryland Credit Services Business Act Mortgage Electronic Registration System Mutual Mortgage Insurance Fund Marketplace Lender Money Services Business Money Transmitter Regulators Association National Automated Clearinghouse Association National Association of Insurance Commissioners National Bank Act
vi A Financial System That Creates Economic Opportunities ? Nonbank Financials, Fintech, and Innovation
NCUA NFC NIST NMLS
NSF NSS OBIE OCC OFX P2P PaaS PCI-DSS PII PIN PLS PSD2 PSP RTP SaaS SAFE Act SEC SIFMA SRO SWIFT SWIFT GPI
TCH TCPA TFFT
Treasury
National Credit Union Administration Near Field Communication National Institute of Standards and Technology Nationwide Mortgage Licensing System or Nationwide Multistate Licensing System National Science Foundation National Settlement Service Open Banking Implementation Entity (U.K.) Office of the Comptroller of the Currency Open Financial Exchange Person-to-Person or Peer-to-Peer Platform as a Service Payment Card Industry Data Security Standard Personally Identifiable Information Personal Identification Number Private-Label Securities Revised Payment Services Directive (E.U.) Payment Service Provider Real Time Payments Software as a Service Secure and Fair Enforcement for Mortgage Licensing Act U.S. Securities and Exchange Commission Securities Industry and Financial Markets Association Self-Regulatory Organization Society for Worldwide Interbank Financial Telecommunication Society for Worldwide Interbank Financial Telecommunication Global Payments Innovation The Clearing House Telephone Consumer Protection Act Basel Committee on Banking Supervision's Task Force on Financial Technology U.S. Department of the Treasury
A Financial System That Creates Economic Opportunities ? Nonbank Financials, Fintech, and Innovation vii
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- modernizing through innovation
- u s department of the treasury
- department of the treasury fy 2018 agency financial report
- department of the treasury
- a financial system that creates economic opportunities
- future of financial management gov
- department of the treasury agency financial report
- congressional staff handbook 2006
- the future of federal financial management
- division of investment department of the treasury
Related searches
- federal financial system requirements
- financial system requirements
- core financial system requirements
- jfmip core financial system requirements
- an effective financial system needs
- indian financial system pdf
- financial system analysis
- factors that support economic growth pdf
- factors that support economic growth
- how the financial system works
- us financial system overview
- international financial system pdf