Our CEO met with the Consumer Financial Protection Bureau (CFPB) to discuss VendorMach and trends around SMBs, matching unpaid invoices with liquidity options and creating better efficiencies between buyers and their suppliers.
In the meeting consisting of representatives from the US Federal Reserve bank, Small Business Program team at CFPB and Office of Credit and Collections management, topics such as Dodd Frank 1071, statutes under FTC Act 5 and prudential safety and soundness came up.
Being predictive, the VM trust score meets prudential, safety and soundness rules. Disclosures that we make as a company are very thorough and our practices around data collection and privacy (especially how we treat self reported data ) are best in class.
It was good to learn that Dodd Frank 1071 regulation is being implemented, requiring every lender to collect/specify demographic data on women and minority owned businesses, a much needed initiative to bridge the gap.
While it wasn’t clear when there may be more prescriptive guidance for how FinTech’s and FinServs are to evaluate and underwrite businesses for alternative lending products, it’s good to know that discussions like this, help to inform policy directions.