Experts offer insights on market trends, the regulatory environment and potential disruptors like cryptocurrencies.
While banks re-emerged from the recession as more conservative lenders, most have returned to previous activity levels and are competing to some degree with new fintech companies and credit unions. And this increased activity is occurring despite the current “treacherous regulatory climate,” according to Ginsberg.
When asked to characterize the regulatory environment’s impact on the industry, Lese said, “It’s still difficult for financial services and collection agencies alike as there’s still a lack of guidance and confusion throughout the industry about best practices. But in May 2018, a marginal deregulation bill [Economic Growth, Regulatory Relief and Consumer Protection Act] signed by President Trump, made a little bit of a difference, but it lacked some risk portfolios and oversight for mid-sized banks, and didn’t necessarily meet the expectations of the financial services industry. Nonetheless, from what I’ve heard from experts, my reading and research, the current environment is more optimistic than let’s say two, three, five years ago under the previous administration.”
And, a lot could change in the next 12 to 14 months. As industry professionals await the Consumer Financial Protection Bureau’s final debt collection rules, others will be tuned in to presidential politics as the 2020 election approaches. These regulatory and political issues coupled with potential disrupters like cryptocurrencies and a potential recession could have a lasting impact on the industry. To learn more, check out Ginsberg’s conversation with Lese on ACA Cast: “Growth Market: The Re-Emergence of Financial Services.”