Statement from Online Lenders Alliance ahead of House Committee on Financial Services Hearing on Bank-Fintech Partnerships

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Online Lenders Alliance CEO Mary Jackson: “Partnerships between banks and fintech companies are not only legal and already regulated, but also are a positive step forward for consumers who need credit access but are otherwise considered too risky for traditional lenders."

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Ahead of today’s House Financial Services Committee (HFSC) hearing titled, “Rent-A-Bank Schemes and New Debt Traps: Assessing Efforts to Evade State Consumer Protections and Interest Rate Caps,” OLA CEO Mary Jackson issued the following statement:

"Partnerships between banks and fintech companies are not only legal and already regulated, but also are a positive step forward for consumers who need credit access but are otherwise considered too risky for traditional lenders. Through these partnerships, banks benefit from the technology that fintech companies have spent decades developing and refining. In so doing, banks and fintechs working together can continue providing innovative financial products that banks alone are otherwise unable to offer.

"This creates more competition in the marketplace, which drives down prices and establishes a diversity of financial products available to consumers. For these reasons, the House Financial Services Committee should be promoting bank-fintech partnerships as a way to provide better services to more consumers at a lower cost — not trying to regulate them out of the marketplace."

About The Online Lenders Alliance

The Online Lenders Alliance (OLA) is the first trade association in FinTech. OLA is focused on credit inclusion, bringing together a diverse group of innovative companies who share a common goal: to serve hardworking Americans who deserve access to trustworthy credit. Our members are entrepreneurs, publicly traded companies, lenders, credit bureaus, advertisers, lead generators, compliance professionals, and software developers who are leveraging technology to responsibly improve consumers’ financial health. Consumer protection is our top priority and OLA members abide by a rigorous set of Best Practices and Code of Conduct to ensure consumers are fully informed and fairly treated. For more information and to review our most recent policy white paper highlighting how innovation in the financial technology space is playing a role in driving credit inclusion for the approximately 100 million Americans who currently fall into the non-prime credit category, please visit http://www.onlinelendersalliance.org.

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