On May 24, 2022, the CFPB announced that it is opening a new office, the Office of Competition and Innovation, as part of a new approach to help spur innovation in financial services by promoting competition and identifying stumbling blocks for new market entrants. The office will replace the Office of Innovation that focused on an application-based process to confer special regulatory treatment on individual companies. With the new office, the CFPB will be able to analyze obstacles to open markets, better understand how big players squeeze smaller ones out, and host incubation events, in order to enhance user choice in the financial world.
From CFPB Director Rohit Chopra’s statement:
“Competition is one of the best forms of motivation. It can help companies innovate and make their products better, and their customers happier. We will be looking at ways to clear obstacles and pave the path to help people have more options and more easily make choices that are best for their needs.”
The new office will support the CFPB’s general effort at increasing competition for the benefit of all consumers. In particular, the Office of Competition and Innovation will help the CFPB:
Give consumers their walking rights to switch providers;
Research structural problems blocking successes;
Understand how bigger players can gain advantage over smaller players;
Identify ways to address commonplace obstacles; and
Host events to explore barriers to entry and other obstacles:
The full CFPB’s announcement can be found here.