Few industries have been more innovative than the financial business.
Many companies routinely allow you to shop for investments, apply for loans, check credit reports and much more through electronic means. In recent years, the term “fintech” has been used to describe some of these innovations, especially those geared around smart phones.
But some fintech companies are seeking to offer services that could skirt important consumer protections, warns a new report from the National Consumer Law Center. The study sees fintech developments as part of a trend to weaken key safeguards, with the potential for more fraud, deception or other costs.
Innovation in the financial field is of prime importance to Arizona, which in 2018 became the first state to allow fintech companies to offer trial runs of their services, with less regulatory oversight, through its new “sandbox” program.
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