In wide ranging interview, Chopra and AFC CEO Phil Goldfeder talked data privacy, bank-fintech partnerships, Buy Now Pay Later (BNPL), third party risk management programs, and the use of Artificial Intelligence in underwriting

AFC hosted a full slate of panel discussions with industry experts on important policy and regulatory topics at the largest fintech event on the East Coast

NEW YORK, NY (May 15, 2023) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies creating critical access to safe and affordable financial services, was front and center at Fintech Nexus, the largest fintech event on the East Coast, including a keynote stage conversation with Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra. In partnership with Fintech Nexus, AFC facilitated and hosted a full day of panel presentations led by thought leaders and industry experts.

“AFC is committed to providing innovative, accessible and responsible consumer products without compromising on regulatory compliance or consumer protection,” said Phil Goldfeder, Chief Executive Officer of the AFC. “With meaningful and continued dialogue, responsible financial innovators working in tandem with pragmatic and forward-thinking regulators can create a lasting compliance infrastructure that will safely increase access to financial services.”

Last week, Fintech Nexus convened almost 5,000 fintech industry participants representing more than 1,000 companies and more than 250 sponsors at the Javits Center in New York City. In a conversation that took place on the keynote stage, Goldfeder held a lengthy fireside chat with Director Chopra covering multiple CFPB priorities and thoughts regarding fintech innovation.

“I think when you design the rules just for the biggest incumbents you create problems, so we are generally taking a new approach to regulating,” said Director Chopra in his remarks. “We’re looking more at how do you promote a competitive, decentralized market structure, how do you make sure that middlemen and gatekeepers don't get to eat a big part of that pie, and ultimately how do you create rules that promote switching and shopping…You’re going to see us try and create rules that are more timeless, and that there can be standard setting by incumbents, by challengers, by consumers in a way that is fair and in a way that the regulators can point to and have confidence in.”

Regarding Buy Now Pay Later (BNPL), Director Chopra discussed the recent study concluded by the CFPB that examined the burgeoning industry. “It’s [BNPL] like a competitive alternative…we want to make sure buy now pay later is not built on any regulatory arbitrage, that it has some of the same protection as a credit card…you’ll see us do more to try and make sure that BNPL becomes more of a race to the top than a race to the bottom,” he said.

The Director also addressed open banking, the use of alternative data and innovation in underwriting noting that,“more lenders are getting insight on cash flow, what's coming in the account and what's leaving, that's going to give people insight on residual income, which really is in some ways going back to the basics of banking, of saying how much money does someone have left in order to service some sort of new loan or financial obligation.”

“Tremendous thank you to Director Chopra, the team at Fintech Nexus, our members and all the experts that joined us for this thoughtful and engaging day,” concluded Goldfeder

In addition to the conversation with Director Chopra, the AFC also hosted a full day of panel sessions with their members and leading experts who discussed important issues like Federal and State regulators engaging in regulatory oversight, bank-fintech Partnerships, crypto regulation, and open banking.

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