Graeme Sloan/Bloomberg

Whatever the outcome of this presidential electioneveryone in financial services knew we were in for a change in presidential administration: new regulators, new priorities, and ideally a new approach. Now it is clear that Republican control will return to the White House Both houses of Congress and many state capitals will also see new administrations take the reins. The opportunity to rethink financial services regulation is here, and not a moment too soon.

The last decade has seen incredible innovation and growth in the financial sector, particularly driven by responsible actors. financial technology companies and innovative banks offering more inclusive and transparent financial services that consumers have long demanded. It is becoming increasingly clear, however, that many policymakers and regulators across the country – regardless of political party – remain trapped in outdated notions of finance, applying decades-old frameworks to products and services that are fundamentally different from those of the past.

As new leadership forms across the country, we face a significant disconnect between the fintech products that help consumers improve their daily lives and the regulatory systems designed to keep our banking system fair and stable. In the name of consumer protection, we should not compromise access to the responsible tools that families rely on.

The years to come are an opportunity to chart a more forward-looking path. The new Trump administration, along with state leaders, must prioritize regulatory nominees who understand the fintech industry and recognize that old regulatory structures do not seamlessly accommodate new products and services. Responsible fintech companies are ready to collaborate to create rules of conduct that protect consumers without stifling innovation. Our collective goal and ultimate goal must be to eliminate traditional barriers to capital and better serve communities and businesses.

Responsible fintech companies share the goal of using technology to bring access, transparency, inclusiveness, security and simplicity to financing. Our industry has succeeded by democratizing financial services and giving consumers a level of confidence and control over their financial future that the traditional system has long struggled to provide.

Take, for example, the Federal Deposit Insurance Corp.’s recent proposal. regarding negotiated deposits. Previous guidance on this rule, which aims to prevent banks from taking excessive risks, was designed with industry input and thoughtfully developed to ensure true collaboration between the industry and regulators. Millions of people, especially from historically underserved communities, now rely on easy-to-use fintech platforms to manage their finances. These provide convenient access to traditional banking products through bank-fintech partnerships. Although previous FDIC guidance respected these partnerships, the FDIC’s proposed new rules sweep them away in decades-old regulations falsely portraying them as inherently risky. The proposal simply does not correspond to reality of these partnerships, and would ultimately harm consumers who rely on fintech tools for their daily financial management under the guise of consumer protection.

Individuals and families who rely on Responsible Earned Wage Access, or EWA, products also find an important financial tool threatened by regulation. EWA allows workers to access a portion of the wages they have already earned before their paycheck arrives. This provides a crucial lifeline for those who are struggling with cash flow, relying on extra income from extra shifts, or using EWA products to meet unexpected expenses. EWA is non-recourse – meaning providers do not engage in any collection activities – and do not charge interest. However, the rules proposed by the CFPB would treat EWA products resemble traditional loans, ignoring the crucial differences that made EWA popular with consumers in the first place. It is difficult to overstate the importance of EWA to users compared to harmful alternatives such as payday loans and predatory lending. In the name of consumer protection, the CFPB threatens to reduce the availability of this flexible financial tool and inadvertently push consumers toward the predatory products of the past.

The importance of establishing good standards in financial technology is underlined by the broad scope of innovation across the sector. Fintech extends well beyond the world of startups and technology companies to include community and regional banks that strive to bring the latest technologies and services to families across the country. All of this important work is jeopardized if state or federal policymakers fail to consider the responsible innovations that underpin consumer-centric finance, which would ultimately harm ordinary citizens the most.

Consumers benefit from products that are perfectly tailored to their needs, as opposed to the opaque, complex and expensive business models of the past. Whatever “disruption” fintech has caused, it says less about the responsible players in our industry than about the massive gaps left in our system by traditional institutions that have become accustomed to operating on outdated fine print models. and hidden fees.

The best companies and products are those that give consumers what they want and need. In finance, this means transparency, inclusiveness and control. As long as responsible fintech companies and innovative banks continue to deliver on their promises, our industry, and more importantly, the families they serve, will continue to win. Without responsible innovation in financial services, millions of Americans, especially those underserved by traditional institutions, will pay the price: fewer choices, less competition, and weakened innovation.

Responsible fintech stakeholders are ready to work with new administrations and regulators, in Washington and in states across the country, on common-sense rules that give us the clarity we need to better serve the American people. It is up to those in power to recognize the realities of a responsible fintech industry and place consumer needs at the center of policymaking.