The European Commission and the U.S. Consumer Financial Protection Bureau (CFPB) have launched an informal dialogue to address the risks of rapid digitalization. Their collaboration safeguards consumers from fraud, privacy violations and discrimination concerns, according to a press release.
Didier Reynders, commissioner for justice and consumer protection at the European Commission, and Rohit Chopra, director of the U.S. CFPB, have started an informal dialogue to address pressing financial consumer protection issues such as fraud, privacy violations and potential discrimination against consumers. The two businesses explained their intention to collaborate with one another in a statement that was released on July 17, citing the fast adoption of digital technology within the financial industry as the driving force for their decision. These technologies include artificial intelligence as well as the ability to buy now and pay later for items.
According to the statement, the European Commission and the CFPB will collaborate to address these concerns by sharing their knowledge and expertise on consumer financial goods and services. The application of artificial intelligence in automated decision-making, the perils of novel credit products, strategies for reducing consumer over-indebtedness, extending access to financial services and the effects of huge technology businesses joining the financial sector are some of the topics that are discussed in this course.
The partnership will include yearly gatherings, roundtable discussions among employees, bilateral conferences and gatherings at roundtables with representatives from consumer advocacy groups and business organizations. Due to the potentially sensitive nature of certain debates, they may need to be held in private, but other debates may welcome input from a diverse group of parties who have an interest in the topic.
Both the European Commission and the Consumer Financial Protection Bureau have emphasized the importance of this informal communication serving as a supplement to the more formal channels of collaboration between the European Union and the United States over the laws and regulations that regulate digital and financial services. The primary objective is to make certain that consumer financial protection adequately shields consumers from hazards and issues that are the result of the extensive use of financial technology, which is experiencing rapid change. This is the foundational purpose.