U.S. Chamber of Commerce Takes Issue with CFPB’s RFI for Mobile Financial Services
The U.S. Chamber of Commerce Center for Capital Markets Competitiveness (CCMC) has submitted a letter to the Consumer Financial Protection Bureau regarding “the use of mobile financial services by consumers.”
The CCMC was established by the Chamber of Commerce in 2007 to expand capital markets through modernizing financial regulation.
In their Request for Information (RFI), the Consumer Financial Protection Bureau (CFPB) expressed interest in the growing innovation of the financial services sector. They’re in an information gathering stage, and that has the CCMC a bit worried.
In their letter to the CFPB, the CCMC wrote that the CFPB should:
·[clarify] what the Bureau means by “mobile financial services”, explains what the Bureau hope to achieve in this field, and details the Bureau’s view of its relevant authorities;
·Adopts a substantive approach that enhances innovation in mobile financial services; and
·Commits the Bureau to a clear and collaborative process for any future policymaking regarding mobile financial services.
The CCMC has taken issue with the CFPB’s lack of clarification regarding mobile financial services.
In their RFI, the CFPB did not adequately define “mobile,” nor did it explain what was considered a financial service – whether that means mobile banking, shopping, or mPOS systems when used by lower-income consumers, which is still not clearly defined.
It appears that the CCMC is concerned over the potential actions of the CFPB, and how they could squelch the growing innovation in the financial services industry. It believes that the scope of current regulation is enough to cover and protect consumers, though the CFPB likely wants to clarify the impact of lower-income consumers and their usage of mobile financial services.