The Consumer Financial Protection Bureau has launched Project Catalyst, an effort aimed at opening lines of communication and collaboration in order to drive consumer-friendly innovation in the financial services market.
Richard Cordray, the director of the CFPB, said in a recent speech that the program points to a new approach to the way regulators view their oversight responsibilities.
“One might legitimately ask, ‘What does government have to do with [innovation]?’” Cordray said, according to Mobile Payments Today. “’Is not innovation the business of the private sector operating in the free market?’ [W]hat we have found is that regulators often can impede innovation by not recognizing its importance for consumers and by freezing people who want to try new things but cannot get any straight answers about how to deal with the risks of regulatory uncertainty or novel issues of how existing laws will be applied to unforeseen products and approaches.”
Among the program’s goals, Project Catalyst seeks to establish communication between regulatory agencies and innovators, assist regulators with understanding new developments and encourage entrepreneurs to develop and establish consumer-friendly ideas.jumping castle manufacturers china
“Markets work best when they are open to new ideas,” the CFPB said. “We believe that the insights and innovations that come from looking at problems and solutions from new angles hold great potential in achieving our mission of making the consumer finance market work for consumers.”