Fintech: Is the Water Fine?

8 Journal of International and Comparative Law 435 (2021)

24 Pages Posted: 30 Jun 2023

See all articles by Jennifer Elisa Chapman

Jennifer Elisa Chapman

University of Maryland Francis King Carey School of Law; University of Maryland - Thurgood Marshall Law Library

Date Written: November 11, 2021

Abstract

This article examines how the growth of financial technology (fintech) raises numerous legal and regulatory issues, as well as complex ethical and social justice questions, through the lens of the continuing dispute between the Office of the Comptroller of the Currency (OCC) and the New York Department of Financial Services (NYDFS) over the Office’s Fintech Charter Decision. In doing so, the article highlights comparisons between U.S. and international banking and regulatory environments and how these varying conditions impact the development of fintech, especially the fintech that supports social justice rather than intensifying existing injustices. Specifically, the issues of federal pre-emption in the fintech sector are examined. Federal pre-emption deprives consumers of necessary protections from predatory practices. This has especially pernicious implications for people of colour based on a long history of unequal banking rights in the United States. This article finds that the Office’s overreach through the fintech charter erodes protections necessary to ensure that those who are already historically at risk of predatory and discriminatory banking practices are not further compromised by twenty-first century financial systems. Ultimately, this article argues that the adversarial nature of litigation impedes thoughtful development of fintech regulations that support innovation and protect consumers.

Note: Published in (2021) 8 Journal of International and Comparative Law 435. Publication date December 2021.

Keywords: Fintech; AI; artificial intelligence; banking, consumer protection; financial technology

Suggested Citation

Chapman, Jennifer Elisa, Fintech: Is the Water Fine? (November 11, 2021). 8 Journal of International and Comparative Law 435 (2021), Available at SSRN: https://ssrn.com/abstract=4485836

Jennifer Elisa Chapman (Contact Author)

University of Maryland Francis King Carey School of Law ( email )

500 West Baltimore Street
Baltimore, MD 21201-1786
United States

University of Maryland - Thurgood Marshall Law Library ( email )

501 West Fayette Street
Baltimore, MD 21201
United States

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