US Congress launches fintech and AI task forces

US Congress launches fintech and AI task forces

The US House of Representative is launching task forces looking into fintech and artificial intelligence in financial services.

Set up by the House Committee on Financial Services, the fintech task force will look at domestic and international regulation of the nascent sector as well as the infrastructure and legal and regulatory framework for efficient payments. Other areas of interest for the team of legislators include fintech and lending, specifically the use of alternative data for loan underwriting, and the use of big data and its implications for privacy.

Meanwhile, the committee is setting up a separate task force for AI, looking into its applications in financial services and regulation, its use in digital identification and combating fraud, and how automation could impact jobs in financial services and the overall economy.

Congresswoman Maxine Waters, committee chairwoman, says: "As new technologies emerge and the financial services industry puts those technologies to use, Congress must make sure that responsible innovation is encouraged, and that regulators and the law are adapting to the changing landscape to best protect consumers, investors and small businesses."

Congressman Stephen Lynch, fintech task force chair, adds: "We are witnessing an exciting evolution in the financial services space, which will vastly improve the use and quality of services in lending, payments and money management. The lives of consumers are changing with user-friendly financial service apps but these emerging technologies come with vulnerabilities and the need to reevaluate our consumer protection standards."

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