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  • Frank Tian

CFPB on Innovation

Updated: Sep 28, 2022

Innovation is great, but Competition is the launch pad.

That is the message from the regulator CFPB

Who just renamed one of its key branches. 👇


Picture source: CFPB website


2014: CFPB launched “Project Catalyst”.

2018: The regulator opens “Office of Innovation”.

2022: The office is renamed as “Office of Competition and Innovation”.


Looking back, the regulator now acknowledges that

Reactively issuing no-action letters is ineffective.

A more competitive ecosystem is needed.


A few things emphasized in the CFPB press release:


- Consumers have “walking rights” to switch providers

- Acknowledgment of the power of big players vs. small ones

- Market structure in focus, such as payment network and credit reporting

- Solutions needed to ease obstacles for new entrants: talent, capital, and data


This is one of the few good news lately

For financial innovators who aim to play the long game,

As fintechs under huge pressure in both public and private markets.


The industry is patiently waiting for the open banking rulemaking from CFPB.

US leans to be market-oriented so far vs. Europe’s regulation-led approach.

Lately Plaid, Stripe, and Nova all rolled out new services for the open era.



Content source:

CFPB press release



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