of U.S. Treasury DepartmentAfter consultation with White House Competition Councilreleased a report that found new entrants, non-bank companies, are exerting competitive pressure on incumbent banks, while the concentration on federally insured banks is increasing.
Fintech companies in particular have significantly increased the number of organizations and business models competing in their core consumer finance market.a report entitled Assessing the impact of new non-bank entrants on competition in the consumer finance market We have noticed that these fintech companies are realizing new capabilities. But they also create new risks to consumer protection and market integrity.
Examples include the risks associated with data privacy and regulatory arbitrage. To protect consumers and enable sustainable competition in these rapidly changing markets, the report calls for increased scrutiny of non-bank companies’ consumer finance activities, among other recommendations. .

A healthy economy requires innovation and competition to work together, said the U.S. Treasury Secretary. Janet L. Yellen Said. The entry of non-bank companies into the core consumer finance market has encouraged competition and innovation, but has come with additional risks to consumer protection and market integrity.
This report demonstrates actions to maintain fair, transparent and competitive markets while promoting responsible innovation that benefits consumers. It can foster competition and innovation while enhancing protection and protection.
Promoting fair and responsible competition
the report is President Bidenof July 2021 Executive Order, Promoting Competition in the American Economy. Furthermore, it is the final in a series of reports assessing competition in various aspects of the economy, such as the alcohol industry and the labor market. The report recommends a series of steps to foster fair and responsible competition between banks and fintechs that benefits consumers and their financial well-being.
- To address concerns about market integrity, safety and soundness, regulators need to provide a clear and consistently applied supervisory framework for the relationship between banks and fintechs.
- Fintech relationships with banks that provide consumer financial services provided by an insured depository (IDI) must operate in compliance with the laws, regulations, and risk management standards applicable to the IDI.
- To protect consumers, regulators must closely oversee banking and fintech lending relationships to monitor compliance with consumer protection laws and their impact on consumers’ economic well-being.
- In order to foster innovation that benefits consumers, regulators should adopt consumer spending policies designed to increase credit visibility, reduce bias, and deliberately extend credit to underserved consumers. support innovation in credit underwriting.