Open Banker: Fintechs with Fed Accounts Will Harm Consumers, Not Help Competition

Originally published by Open Banker

America has one of the most competitive banking systems in the world, home to more than 4,000 banks, 4,000 credit unions, and over 10,000 fintech companies. These entities underlie the safe, efficient payment system in the U.S. that allows consumers significant choice in how they pay. But you wouldn’t know it by listening to fintech lobbyists. They warn that the United States’ payment system will be less efficient — and more expensive — than its international counterparts if fintechs aren’t granted the benefits of banks, without any of the regulatory and supervisory costs. America’s banks welcome competition — so long as the competition is based on serving customers, rather than on regulatory arbitrage.