In response to growing concerns around Big Tech’s role in financial services, artificial intelligence (AI) in lending, and the burgeoning popularity of buy now, pay later (BNPL) schemes, U.S. and European regulators have initiated informal discussions aimed at enhancing consumer financial protection.
Senior representatives from the European Commission (EC) and the U.S. Consumer Financial Protection Bureau (CFPB) are engaging in a series of meetings to tackle these emerging “priority areas.” The objective is to exchange insights, coordinate regulatory approaches, and develop best practices.
The rapid ascent of BNPL services has particularly captured regulatory attention due to the potential risks of consumer over-indebtedness—an issue that is projected to intensify significantly over the next decade on both sides of the Atlantic.
Additionally, the meetings address concerns about Big Tech companies’ increasing influence over financial payments systems. Both the EC and CFPB have expressed antitrust apprehensions, particularly regarding Apple’s digital wallet operations.
Discussions also covered the integration of AI in consumer finance, focusing on comparing the legal and regulatory landscapes in the U.S. and Europe. Officials shared details about the types of AI and automated decision-making technologies being employed by firms in each region.
In a joint statement, CFPB Director Rohit Chopra and EC Commissioner Didier Reynders emphasized the importance of transatlantic cooperation: “It is crucial for the U.S. and EU to align our efforts concerning the companies, products, consumer behaviors, and risks that are prevalent across the Atlantic. Our teams have exchanged valuable expertise, identified best practices, and learned from past experiences.”
They added, “Our collaboration aims to ensure that consumers in both regions enjoy robust protection of their financial data and privacy, maintain access to competitive financial markets, are safeguarded against fraud and manipulation, and have effective means for redress when needed.”
Comments