Committee Republicans Release Report on Financial Innovation
April 20, 2021 -
Today, the top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), along with the current and former Republican leaders of the Committee’s Task Forces on Financial Technology and Artificial Intelligence, French Hill (AR-02), Tom Emmer (MN-06), and Barry Loudermilk (GA-11), released a Republican staff report outlining the work of the task forces in the 116th Congress and providing recommendations as to how we can fully utilize innovation to create a more inclusive financial system.
“Recognizing the promise of technology to build a more inclusive financial system, I worked with my Democrat colleagues to establish the Committee’s task forces last Congress,” said Republican Leader McHenry. “Over the past two years, Republican task force members have made the case for innovation as the key to helping American consumers and businesses gain greater access to credit, investment opportunities, and our banking system. I applaud them for their excellent work. The recommendations in this report should guide the work of the task forces this Congress, as Committee Republicans continue to fight for greater choice and opportunity in our financial system.”
“I’m proud of the work Republicans on the House Financial Services Committee’s FinTech and AI Task Forces have accomplished in producing this report,” said Subcommittee Republican Leader Hill. “Technology continues to play an ever-growing role in our day-to-day lives and with more Americans increasingly conducting financial transactions digitally. While serving as Ranking Member of the FinTech Task Force, I prioritized technological advancements in the payments industry, particularly related to a future digital U.S. dollar, to ensure America remains a global leader in financial services innovation. Congress should be focused on promoting greater financial inclusion and expanded access to financial services while also ensuring that federal policy does not stand in the way of progress and our global competitiveness. I’m pleased these thoughts are reflected in the report.”
“As the Ranking Member of the Financial Technology Task Force, we broke ground on a number of new opportunities that will expand access to our financial system for millions of Americans,” said task force Republican Leader Emmer. “The Task Force explored emerging innovations and ways these technologies can benefit those who have struggled to access banking services in the past. I’m hopeful that the work of this task force will continue to lay the foundation for a better understanding of these financial technologies, and today’s release of the FinTech Report is yet another step towards fostering financial innovation and keeping America competitive on the global stage.”
“As the Republican leader of the Task Force on Artificial Intelligence, my colleagues and I have been able to do a deep dive into how artificial intelligence and financial technology have impacted our economy and what we can expect from this innovative field going forward, said task force Republican Leader Loudermilk. “We have worked toward eliminating the types of bias that do not belong in financial services, while supporting the core purposes of this technology. I truly believe, if we continue to work together in a bipartisan manner and promote pro-growth policies at the federal level, like Georgia has done, we will be a leading global force in the fintech and artificial intelligence space for decades to come. I am proud of the work the task force has done, and I look forward to its reauthorization for the 117th Congress.”
Key Recommendations of the Report:
- America Must Lead in Global Payments: In order to better compete with China and maintain the U.S. dollar as the global reserve currency, Congress should reach consensus on how to support innovation, especially private sector innovation that builds stronger, more effective payment systems.
- Automation Leads to Better Decision Making: Banks should harness the power of data and machine learning to combat fraud, streamline compliance, and make better underwriting decisions, while ensuring transparency for American consumers.
- Congress Must Keep Up with Technology to Better Protect Consumers: Financial services regulations must be updated to reflect the shift toward digitization. That means greater protections for consumers and their data from cyberattacks and data breaches, as well as modernizing the way individuals are identified to ensure the minimal amount of data is used to authorize access to financial products.
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