CFPB Moves to Spur Consumer Finance Competition

  • The Consumer Financial Protection Bureau announced the opening of a new office, the Office of Competition and Innovation, to replace the Office of Innovation. The new office is part of an effort to help promote innovation in financial services and increase competition in the industry.
  • According to the CFPB, the Office of Competition and Innovation will explore ways to reduce barriers to switching financial accounts and providers, research market structure problems that hamper innovation, learn how bigger players have advantages over smaller ones, and explore barriers to entry for new entrants with events like sprints, open houses, hackathons and war games.
  • Said CFPB Director Rohit Chopra, “Competition is one of the best forms of motivation. It can help companies innovate and make their products better and their customers happier. “We will be looking at ways to clear obstacles and pave the path to help people have more options and more easily make choices that are best for their needs.”