Unregulated Fintech Could be the Source of the Next Market Crash
By Kate Patrick
Ten years after the start of the Great Recession, the U.S. economy is currently booming. But some industry experts fear that, without regulation, financial technology (fintech) companies like Biz2Credit, Fora Financial, Kabbage, LendingClub, Lendup and OnDeck Capital, Inc. could bring about the next market crash. So why aren’t governments acting?  …Meanwhile, industry experts are urgently pushing for regulation. According to one recent research paper by Karen Petrou of Federal Financial Analytics, unregulated fintech could precipitate another major market crash. Petrou wrote, “Given that (fintech) is almost entirely unregulated with regard to resilience, recovery, conflicts of interest, monopoly power, and pretty much everything else, this changing landscape poses significant risk from exactly the same vulnerabilities that sparked the last debacle and, even more worrisome, from new ones.