Symposium:
The Future of Data-Driven Financial Services
Event Recap

On January 30, the Bipartisan Policy Center, in partnership with Mastercard, hosted a one-day symposium: The Future of Data-Driven Financial Services. This one-day symposium had over 150+ attendeees and consisted of speakers and expert panelists sharing their regulatory, industry, and market-forward perspectives on key issues.

The financial services sector is being continually transformed by digitization, as well as the rapid utilization and consumption of data. From payment systems to underwriting, asset management to digital footprints, nearly every American has been affected by these changes. As the digital market outpaces regulatory frameworks, hear what panelists had to say on how policy can adapt to protect people without hindering innovation.

Currency is Not a Partisan Issue

The day began with members of Congress from both parties sharing their views on the future of data-driven financial services. They discussed a future where consumers own their data, and their efforts to promote policies that protect consumers’ digital assets.

The House Financial Services Committee is pursuing legislation that does this without interrupting the pace of development-seeking to strike a balance between innovation and privacy. With this, there are opportunities to inform Congress on how financial data has been used, the positives of the features, and the potential of open banking and machine learning for consumers.

Data is the New Oil

As more users are allowing access to their information on various platforms, that data becomes more valuable. While regulators support the objectives of these cutting-edge apps, they want to make sure users have security and privacy, while knowing who to hold accountable if the trust is broken.

From a regulatory standpoint, the core fundamental risk management and controls remain the same: data integrity and confidentiality of data. To mitigate these risks, coordination and collaboration between agencies is necessary to create systems where consumers can access their data directly so that they are empowered and have true ownership and trust of their data’s safety. If vulnerable consumers understood how to respond to threats posed, overall financial health would improve.

It’s Not Just About Innovation, it’s About Responsible Innovation.

Tech giants and financial services companies are asking: are our products delivering what they promised? Do consumers have access? Are we providing good user experience? How can we foster trust from our consumers to handle their information responsibly? Banks and fintechs agreed that these questions implicate governance and the need for consistent levels of protection throughout the ecosystem, especially as cybersecurity continues to threaten both the legacy and startup providers.

As development surges, regulators focus on financial inclusion. Consumers require fairness, equity, and security to address biases, making responsible innovation essential. To ensure AI curtails rather than amplifies bias and discrimination in the financial sector, policymakers, regulators, and industry need to ensure the right safeguards are in place.  Having a human checkpoint can help mitigate bias and bridge community gaps to make finance more accessible.

Conclusion

Digitizing financial services is not new, what is new is the speed with which the technology is being developed, implemented, and adopted across the sector. With the right legislation, which both Congress and industry are eager to collaborate on, public policy can shape and foster this growth while also serving consumers.