Financial technology companies have a curious request of regulators: how about a mulligan?
It's one of the things fintech start-ups pointed to when asked by the Treasury Department's Office of the Comptroller of the Currency for their ideas on how to bring regulation to the rapidly evolving sector. Big banks and tech companies also weighed in; much of the input Treasury received during its comment period came from fintech companies looking for broader inclusion on Wall Street.
Financial services technology firm Markit asked the OCC whether companies "have appropriate space to breathe, to develop and test innovative solutions without fear of enforcement action and regulatory fines," in a letter submitted May 31.
This isn't to say fintech start-ups are naïve about what is projected to be greater compliance expectations from regulators.
"As technology-based third-party relationships have taken an increasingly significant role for banks, the need for focused regulatory guidance has increased," Richard Neiman, LendingClub's head of regulatory and government affairs, wrote to the Treasury.