The US House Committee on Financial Services has unveiled a new task force for financial technology and artificial intelligence.
A variety of US congressmen and congresswomen will split across these two task forces. Chairing the FinTech force will be Stephen Lynch D-MA (democratic – Massachusetts), while the AI taskforce is being chaired by Bill Foster D-IL (democratic – Illinois).
Both of the bodies will have their own goals and targets. The FinTech task force is examining issues such as the regulatory standards on both a domestic and international perspective, reviewing challenges around data privacy, and monitoring lending to see how alternative data can impact loan underwriting.
Additionally, the body will assess the infrastructure and the legal and regulatory framework around efficient payments.
Meanwhile, the AI task force is to explore applications of machine learning within financial services and regulation, emerging risk management perspectives on algorithms and big data, use cases of AI, digital identification technologies and combatting fraud, and how automation is working and how it impacts jobs in financial services and the economy.
Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, said, “As new technologies emerge and the financial services industry puts those technologies to use, Congress must make sure that responsible innovation is encouraged, and that regulators and the law are adapting to the changing landscape to best protect consumers, investors and small businesses.
“The new task forces on financial technology and artificial intelligence, under the leadership of Congressman Lynch and Congressman Foster, respectively, will help Congress to stay on top of new developments in these areas so that we are well-positioned to make policy.”
Congressman Stephen Lynch added, “We are witnessing an exciting evolution in the financial services space, which will vastly improve the use and quality of services in lending, payments and money management. The lives of consumers are changing with user-friendly financial service apps, but these emerging technologies come with vulnerabilities and the need to re-evaluate our consumer protection standards.
“As we explore the future of financial services, this bipartisan task force will give us the opportunity to educate Congress on the opportunities and challenges posed by these technologies and what we can do to produce the best outcomes for consumers.”
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