Why Fintechs Should Care About The CFPB

Debevoise & Plimpton attorneys caution financial technology companies that recent actions by the Consumer Financial Protection Bureau signal it intends to take an expansive view of its jurisdiction. They offer several steps fintechs can take to prepare for this extra scrutiny.

Financial technology companies, particularly fledgling startups, are primarily concerned with ensuring they have a thriving business model that can attract sufficient funding, especially with darkening economic forecasts.

Although legal and regulatory concerns factor into the development of a business model or raising capital, the Consumer Financial Protection Bureau may not be top of mind for many fintechs. But the CFPB has always had broad supervisory and enforcement authority over non-banks.