Bureau to collaborate with consumer-friendly innovators

The Consumer Financial Protection Bureau has launched an initiative to encourage consumer-friendly innovation in financial products.

The Consumer Financial Protection Bureau has launched an initiative to encourage consumer-friendly innovation in financial products. A project the Bureau views as a fulfillment of its mandate under the Dodd-Frank Act, the CFPB is seeking innovators who may be affected by the Bureau’s regulations. It also wants to understand emerging products in the market and engage innovators with new ideas, the Bureau said in a press release.

Called “Project Catalyst,” the Bureau isn’t just seeking to communicate with innovators. In addition to collecting data through these companies, the Bureau also offers partnership. The project website tells entrepreneurs who “have an idea and are interested in collaborating with us and/or launching a pilot of the new idea with us” to contact the Bureau. So far, reports only speak of information sharing.

Three companies have partnered with the Bureau to collect anonymous data about consumer’s needs and practices. These companies are:

  • BillGuard: BillGuard alerts consumers to questionable charges on their debit and credit cards and helps them resolve billing disputes quickly. BillGuard will share their billing dispute data on consumer complaints and complaint resolution with the Bureau.
  • Plastyc: Plastyc is an alternative banking company. Plastyc’s data sharing will focus on the value consumers place on easily depositing and obtaining immediate access to their funds.
  • Simple: Simple also is an alternative banking company. Simple will share data on consumer spending habits and saving tools.

The Bureau isn’t limiting collaboration to startups, according to a CFPB statement collected by Bank Technology News.

Fredrikson & Byron Law