IDG Contributor Network: Feds struggle with regulating banking’s use of big data
When it comes to fintech, banking and payments, big data comes with some powerful pros and cons. The big advantage is that big data can make banking services useful and viable to a huge slice of the population that can’t access it today. The greatest drawback is that, in doing so, it will make ultrasensitive personal financial information far more distributed, and therefore easier to steal.
That sets up a policy struggle for federal and state regulators, which was illustrated last week by a speech from the director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray.
Cordray made clear that he doesn’t want to stand in the way of progress or the access that big data can offer but that he needs to protect consumers and put in safeguards in case something goes wrong.
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