CEO DATELINE - Tech companies form new group to push ‘financial innovation'
CEO DATELINE - Tech companies form new group to push ‘financial innovation'
- November 3, 2015 |
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Walt Williams
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Five of the nation's largest technology companies have formed a new coalition to promote "greater innovation in financial services," although observers say the likely purpose is to counter lobbying efforts by banking groups.
Amazon, Apple, Google, Intuit and PayPal announced the launch of Financial Innovation Now Tuesday. According to a news release, the new group believes financial innovation will "empower consumers by improving access to financial tools and services, increasing convenience and ease of use, and helping users save money and lower costs."
The coalition doesn't spell out what technologies it trumpets as "innovation," although it does mention real-time payments processing and online lending as two possibilities.
"Innovation is coming to financial services, and now is the time for Washington to help enable a modern financial system that is more accessible, affordable, and secure," said Brian Peters, executive director of Financial Innovation Now. "This alliance of remarkably innovative companies brings a new voice to Washington's financial conversations, and we look forward to engaging on a wide range of opportunities."
Peters is a partner at advocacy firm Franklin Square Group and former director of government relations for the Information Technology Industry Council. http://bit.ly/1MEJTmt
Besides being tech giants, the coalition's five founding members also have in common experimentation with new ways of providing financial services, to consumers. Industry news site American Banker noted that traditional financial instructions like banks have complained that financial technology companies are not subject to the same regulations as they are. As a result, they have been pushing for increased regulation of the sector to level the playing field.
"You can imagine a group like this now saying to lawmakers, ‘We are not like them, we should be regulated relative to what we are and what we do, as opposed to banks who pose different risks,'" Brian Knight, associate director of the Milken Institute, told the publication. http://bit.ly/20qOk8w
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