KXAN Interview: Fintech Regulation in Texas

With new financial technologies transforming how we send, receive and spend money, Texas lawmakers are evaluating what it would mean if a regulatory “sandbox” were to be implemented in the state.

Right now, Arizona is the only state in the U.S. to adopt such a policy, which alleviates some regulations that financial technology companies must deal with when trying to launch a new product to market.

Cesare Fracassi, associate professor of finance at the McCombs School of Business at the University of Texas at Austin, says it’s currently a costly process to ensure consumers are protected.

“Think about how expensive it is to open a bank,” he said. “In order to open a bank, you have to actually go through a series of regulatory hurdles to make sure when you actually open a bank, you’re going to receive the money. You’re going to use the money in a way that it’s actually not risky.”

Watch the entire interview with McCombs Professor Cesare Fracassi, as he discusses FinTech regulation in Texas on KXAN:
http://www.kxan.com/news/us-politics/texas/texas-lawmakers-looking-at-ideas-to-spur-financial-technology-growth/1144039620

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