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WBK Industry News - State Regulatory Developments

CFPB Announces Launch of American Consumer Financial Innovation Network

On September 10, 2019, the CFPB announced the launch of the American Consumer Financial Innovation Network (ACFIN), a partnership between the CFPB and state regulators.  The creation of ACFIN addresses, among other things, the burden on innovation arising from a lack of coordination between the federal and state governments.  To address this problem, the stated goals of ACFIN are to: (1) “[e]stablish coordination between Members to benefit consumers by facilitating innovation that enhances competition, consumer access, or financial inclusion;” (2) “[m]inimize unnecessary regulatory burdens and bolster regulatory certainty for innovative consumer financial products and services;” and (3) “[k]eep pace with the evolution of technology in markets for consumer financial products and services in order to help ensure those markets are free from fraud, discrimination, and deceptive practices.”  

To accomplish these goals, the function of ACFIN will include facilitating coordination among members and sharing innovation-related information.  However, under ACFIN’s charter, any action undertaken by ACFIN will not be for the purpose of preempting state law.

Although the CFPB invited all state regulators to join in the creation of ACFIN, there are seven initial members: the Attorney Generals of Alabama, Arizona, Georgia, Indiana, South Carolina, Tennessee, and Utah.