The Financial Services Industry: Flying in the Winds of Change — Robin Nunn
The global pandemic, coupled with a new Administration, has hastened the pace of change in the financial services industry. The trend is toward heightened consumer demand for digital financial solutions — coupled with tighter regulations of the industry overall.
We’re in conversation with Robin Nunn, an innovator and thought leader in the fintech industry, about emerging trends, regulatory approaches, and consumer empowerment.
Robin, as we move through the second year of the Biden Administration, what kind of changes have you experienced in your industry, and what can we expect on the road ahead?
We’re seeing a lot of energy around financial services, with closer scrutiny and stronger enforcement expected. We’ve started to see more movement in bank regulatory agencies, including leadership changes that are bringing more women and diverse candidates into the selection process. But several key regulatory positions still need to be filled, and I believe that once they are, fresh perspectives will have a significant impact on financial services policy.
We can expect consumer protection initiatives to be a major area of focus for this Administration. The feeling is widespread that we need to revisit regulations that may have been curtailed or phased out during the last Administration. We expect to see a significant uptick in regulatory oversight aimed at compliance and risk.
One key new leadership position is at the Consumer Financial Protection Bureau (CFPB), the U.S. government agency that makes sure banks, lenders, and other financial companies treat consumers fairly. More focus is expected on investigating consumer complaints, and more enforcement is anticipated in such areas as fair lending, unfair or deceptive acts or practices, and companies that violate the law.
Nontraditional financing options, like payday lending and “buy now, pay later” loans, are in the regulatory spotlight, and we’re expecting more measures to protect consumers from risk. We’re also seeing a lot of regulatory activity with the Paycheck Protection Program, the initiative that was rolled out in the wake of the pandemic to assist with providing the nation’s small businesses with much-needed funds.
We’re observing more focus, too, on the Community Reinvestment Act. That’s a Civil Rights Era law that encourages bank lending to underserved communities and requires banks to document their progress in lending to these communities. Most people agree we have a wealth gap in our country and a large part of our society is unserved or underserved by current financial options. The application of various products and services is inconsistent, meaning offerings work well for the banked but not the unbanked, poor, and underserved. Overall, the focus has intensified on racial and social justice, with the goal of leveling the financial playing field and making sure our institutions are fair in their lending practices.
Thank you for sharing your perspective with us, Robin.
Robin Nunn leads one of the country’s preeminent banking and financial services practices, advising financial institutions on complex regulatory, enforcement, and transactional requirements. A high-level corporate lawyer, she works at the intersection of law, business, and government policy. Her current focus is on issues connected to new communications technologies.
