US and European officials have initiated an “informal dialogue” on consumer financial protection issues, focusing on the rise of Big Tech in payments, the use of AI in lending, and the emergence of buy now, pay later (BNPL) services.
Senior representatives from the European Commission and the Consumer Financial Protection Bureau (CFPB) have been holding discussions about these three critical areas to share expertise and best practices while coordinating their approaches.
BNPL has gained significant popularity on both sides of the Atlantic in recent years, leading to concerns about potential over-indebtedness, which the European Commission anticipates will increase considerably in the upcoming decade.
At the same time, regulators in the US and Europe are addressing the growing influence of Big Tech in the financial sector, particularly in payments. Both the EC and CFPB have expressed antitrust concerns regarding Apple’s digital wallet.
Regarding AI, officials have examined the similarities and differences in legal and regulatory frameworks for consumer finance and exchanged information about various AI and automated decision-making use cases being implemented by firms in their respective jurisdictions.
In a joint statement, CFPB Director Rohit Chopra and EC Commissioner Didier Reynders emphasized the importance of US-EU coordination on firms, products, consumer trends, and risks that cross the Atlantic. They noted, “Together, we can help ensure that consumers across the Atlantic have their financial data and privacy respected, are not surveilled and misused, retain meaningful choices in competitive consumer finance markets, avoid fraud and manipulation, and have the necessary tools for recourse when issues arise.”