Sep 6, 2016
Today's show explores financial innovation through the
eyes of one of America's most respected consumer advocates. My
guest is Lauren Saunders, Associate Director of the National Consumer Law
Center.
The NCLC has been active in consumer financial protection for
over 40 years. Lauren manages its Washington, DC office and directs
its federal legislative and regulatory work on issues like prepaid
cards, electronic payments, small dollar loans, credit cards, bank
accounts, and consumer protection regulation overall. She also
contributes to NCLC legal treatises, including Consumer Banking and Payments
Law, Consumer Credit
Regulation, and Fair Credit
Reporting. Previously she directed the Federal
Rights Project of the National Senior Citizens Law Center; was
Deputy Director of Litigation at Bet Tzedek Legal Services; and was
an associate at Hall & Phillips. She graduated magna cum laude from
Harvard Law School and was an Executive Editor of the Harvard Law
Review. She holds a Masters' in Public Policy from Harvard's
Kennedy School of Government and a B.A., Phi Beta Kappa, from
Stanford University.
In our conversation, Lauren talks thoughtfully about what
worries her about consumer finance today and how she thinks we
should address emerging problems. We had a wide-ranging discussion,
including about what would happen if traditional payday lending was
no longer an option (she'd like a "Goldilocks" approach on loan
length). She also discusses her concerns about both easy credit and
fast credit; partnering between banks and marketplace lenders;
using alternative data in underwriting; and the future of overdraft
products as we move toward increasingly fast - and even real-time -
payments.
For a look into the innovators who were mentioned in the show
(and who have been featured as previous guests), check out their
websites: Digit, Even, and Simple. Also note
Lauren's mention of the American Express-backed movie, Spent.
Also ....
Time is running out to vote for my SXSW
panel! Remember to vote for my panel for SXSW 2017.
It's Regulation Innovation - how to modernize regulation to
optimize financial innovation. My fantastic panelists are CFSI's
CEO Jennifer Tescher, the White House's Adrienne Harris, and Simple
CEO Josh Reich. To vote, just go to http://panelpicker.sxsw.com/vote/67829 (there's
a quick signup to be sure the votes are real). And please plan to
come to SXSW!
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Going global: I recorded the
introduction to this episode from the airport en route to London (I
figure if Tim Ferriss can do this - and he inspired me to try
pod-casting - I can give it a try). I'm heading to the UK for
meetings on progress so far with the regulatory sandbox that was
launched this year by the Financial Conduct Authority, to distill
some lessons for the United States with our much more fragmented
regulatory structure.
Two days after I return from London, I'm heading to Fiji for
the annual global conference of AFI - the Alliance for Financial
Inclusion, which is made up of the financial regulators of the
Global South. In November, I'll be speaking at the FinTech forum of
the Singapore Monetary Authority - in the portion that will be
Asia's first-ever RegTech conference in Asia. And I recently had to
turn down invitations to speak in Tokyo and in Shanghai, and to
participate in a UN gathering in Tanzania.
All of which is to say, financial innovation is global, and
so are the global challenges of how to regulate it, and so is
Barefoot Innovation. We have listeners throughout the world, and
I'll be recording fascinating podcasts on these travels. Watch for
widened horizons this fall.
Upcoming: Meanwhile, come back next time for
my special guest, Sam Hodges of Funding Circle.
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