New U.S. House Committee task forces on fintech and AI to investigate identification tech

The U.S. House Committee on Financial Services is creating a pair of task forces, one to investigate financial technology and another to investigate artificial intelligence, Committee Chairwoman Maxine Waters (D-CA) has announced.

“As new technologies emerge and the financial services industry puts those technologies to use, Congress must make sure that responsible innovation is encouraged, and that regulators and the law are adapting to the changing landscape to best protect consumers, investors and small businesses,” says Waters.

The Task Force on Financial Technology will be chaired by Congressman Stephen Lynch (D-MA), and will consider regulating fintech, as well as assess the infrastructure and the legal and regulatory framework for efficient payments. It will also weigh the use of alternative data from loan underwriting and challenges big data presents to privacy.

The Task Force on Artificial Intelligence, chaired by Congressman Bill Foster (D-IL), will examine digital identification technologies and how they can be used with AI to reduce fraud, as well as issues related to regulating machine learning in financial services, managing risk from algorithms and big data, and the impact of automation on jobs and other overall economy.

“Developments in AI are at the forefront of innovation that is changing the way Americans operate in the marketplace, how we think about identity security, and how we do business with financial institutions,” comments Foster. “It is affecting everything from how we access our money to how we apply for mortgages and make financial investments. AI has the potential to help break down barriers and make it easier for entrepreneurs, aspiring homeowners, and consumers to interact with banks and utilize financial services, but it is crucial that the application of AI to financial services contributes to an economy that is fair for all Americans. I’m looking forward to working with my colleagues to better understand how we can utilize AI to maintain the competitiveness of our nation’s financial services sector and how it translates into building a financial system that works for everyone.”

The use of AI in banking is expected to grow from a $41.1 billion business to $300 billion by 2030, led initially by banks in North America.

The House Oversight and Reform Committee was reported earlier this year to be considering holding hearings on facial recognition.

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