While the CFPB intends to expand its regulatory authority in the name of protecting consumers, it must be careful not to overstep and create a regulatory environment that degrades the significant consumer welfare fintech companies provide. While doing so would inflict considerable and unnecessary harm on consumers at large, low-income and those outside of conventional banking would be hardest hit, leaving them without access to finance and credit. Unfortunately, the growing attention the bureau is paying to fintech companies suggests they are not considering these consumers.

The full commentary is available in Inside Sources.