GAO issues report on benefits, challenges of fintech products

The U.S. Government Accountability Office (GAO) has issued a report that provides a detailed analysis of fintech products, examining both the benefits and challenges. The GAO report said the products and services that fintech companies offer generally fall into four different areas: payments between individuals, and between individuals and businesses; loans to consumers and businesses; advice on wealth management or general financial activities; and distributed ledger technology used to make payments, record and track asset ownership. The services are typically offered over the internet or through mobile devices. Among their benefits, these products offer convenience and lower costs. While fintech products typically pose similar risks as traditional financial products and services, their risks are not always addressed by existing laws and regulations. Further, the use of some fintech products could lead to data security and privacy concerns that could potentially impact overall financial stability.

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