US Consumer Financial Protection Bureau Releases Project Catalyst Report Highlighting Consumer Innovation
The US Consumer Financial Protection Bureau released a report highlighting market innovations with the potential for consumer benefits as part of its Project Catalyst, a collaborative effort for the CFPB to research and encourage new or emerging projects that are consumer-friendly. The CFPB highlighted how Project Catalyst has led to the regulator engaging with companies and entrepreneurs that are developing new financial products—the report highlighted how the placing of the CFPB’s “trial disclosure waiver” program and no-action letter policy under the auspices of Project Catalyst has led to the CFPB better supporting innovation.
The report also highlighted a number of specific innovations that Project Catalyst has learned of or supported. The report praised efforts to employ non-traditional data sources and new analysis method to expand credit access to poorer customers or those with no credit history, as well as efforts to encourage the sharing of consumer data to allow for faster verification and approvals and personal financial management offerings. Furthermore, the report highlighted new financial products, from lower-interest student loan refinancing to more modern mortgage servicing platforms and peer-to-peer payment systems.
The report concluded by characterizing Project Catalyst as a “foundation” for the CFPB promoting consumer-friendly innovation and increasing outreach and collaboration efforts between the financial industry and the CFPB as a regulator.
View CFPB press release.
View CFPB Report.TOPIC: FinTech