M-RCBG Associate Working Paper No. 111
Regulation Innovation: Failures and Costs of Consumer Financial Protection Regulation
Jo Ann Barefoot
This is the second in a series of six working papers on Regulation Innovation in consumer finance. The series will explore how technology is changing financial services in ways that can enhance consumer financial health and inclusion, and it will suggest appropriate regulatory strategies for optimizing these trends. The first paper offered an overview of the current framework for consumer financial protection in the United States. This second paper assesses the effectiveness and costs of that system. It argues that past efforts have largely failed and should be redesigned to leverage new digital technology that can make both financial and financial regulation more effective and less costly. For a more detailed overview of the series, click here.