1
Remarks by
Jelena McWilliams
Chairman
Federal Deposit Insurance Corporation
at the
Federal Reserve Bank of Philadelphia
“Fintech and the New Financial Landscape”
Philadelphia, Pennsylvania
November 13, 2018
Introduction
I am very pleased to join you today. I would like to
thank President Patrick Harker for hosting this important
event on the role of fintechs.
Every time people mention the word “fintech,” there is
an aura of science fiction to it. And yet, technology in
financial services is nothing new. ATMs and mobile
banking are just a few examples of the innovative services
that have transformed banking in modern times. They are
ubiquitous now, but they were once revolutionary.
Remarks by
Jelena McWilliams
Chairman
Federal Deposit Insurance Corporation
at the
Federal Reserve Bank of Philadelphia
“Fintech and the New Financial Landscape”
Philadelphia, Pennsylvania
November 13, 2018
Introduction
I am very pleased to join you today. I would like to
thank President Patrick Harker for hosting this important
event on the role of fintechs.
Every time people mention the word “fintech,” there is
an aura of science fiction to it. And yet, technology in
financial services is nothing new. ATMs and mobile
banking are just a few examples of the innovative services
that have transformed banking in modern times. They are
ubiquitous now, but they were once revolutionary.
2
Banking has been the product of continuous
innovation, going back to when the Medici Bank and its
contemporaries improved the general ledger system
through the development of the double entry system of
tracking debits and credits or deposits and withdrawals. It
is fair to say that innovation in banking has been around
since at least the 15th century.
What is different today is the speed and tremendous
impact of technological innovation in and on banking, and
the potential for technology to disrupt not just an
institution or two, but banking as we know it. This is why it
is crucial that policymakers and regulators understand the
impact, scope, and consequences that are innate to what we
have come to refer to as “fintechs.”
Role of Innovation in Expanding Bank Access
First, I will touch upon the role of innovation in
expanding bank access because one of the primary
benefactors of innovation are customers. Mobile and online
banking, in particular, offer a level of control, access, and
convenience that consumers have embraced.
Banking has been the product of continuous
innovation, going back to when the Medici Bank and its
contemporaries improved the general ledger system
through the development of the double entry system of
tracking debits and credits or deposits and withdrawals. It
is fair to say that innovation in banking has been around
since at least the 15th century.
What is different today is the speed and tremendous
impact of technological innovation in and on banking, and
the potential for technology to disrupt not just an
institution or two, but banking as we know it. This is why it
is crucial that policymakers and regulators understand the
impact, scope, and consequences that are innate to what we
have come to refer to as “fintechs.”
Role of Innovation in Expanding Bank Access
First, I will touch upon the role of innovation in
expanding bank access because one of the primary
benefactors of innovation are customers. Mobile and online
banking, in particular, offer a level of control, access, and
convenience that consumers have embraced.