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West Georgia congressmen co-sponsoring legislation to aid startup financial tech companies

Mar 12, 2019 MicroBilt News

West Georgia congressmen co-sponsoring legislation to aid startup financial tech companies

District 11 U.S. Rep. Barry Loudermilk, R-Cassville, said he is co-sponsoring a fellow Georgian's legislation because it will help startup financial technology companies to “grow and thrive by streamlining and clarifying the regulatory process” for them.

Loudermilk, a member of the House Financial Services Committee and co-chair of the bipartisan Fintech and Payments Caucus, is co-sponsoring House Resolution 1491, the Fintech Act of 2019, which is sponsored by District 13 U.S. Rep. David Scott, D-Atlanta.

Georgia is a leader in fintech and payments processing companies, he said.

This part of the financial services industry includes product and service companies that support the technology needs of the financial services industry, which includes its payment-processing infrastructure, according to the Atlanta-based Technology Association of Georgia.

Companies like Can Capital and Microbilt in Kennesaw are included in this sector, according to the Technology Association.

“As startup companies develop new technologies that help consumers take more control of their finances, they risk an onslaught of government agencies rushing in with new regulations,” Loudermilk said.

“The mad dash for regulatory control often results in conflicting regulations from multiple agencies, which stifles innovation, ultimately harming consumers,” Loudermilk said.

Scott, a senior member of the House Financial Services Committee and co-chairman of the Fintech and Payments Caucus, sponsored HR 1491 March 4.

“My home state of Georgia is a dynamic, fast-growing national leader of fintech and payment companies, and it is very important for us in Congress to be proactive and help our fintechs get prepared to safely and successfully navigate our complex, multi-faceted federal financial regulatory structure,” Scott said.

He said the Fintech Act of 2019 mandates federal financial regulatory harmonization, meaning that each federal financial regulator that regulates fintechs must harmonize, coordinate, and eliminate any duplication and any conflicting regulations with any other federal regulator who would regulate fintechs.

It also establishes a “point of entry” for fintechs into the federal regulatory structure, Scott said.

He said within the U.S. Treasury Department, the Fintech Act creates a Fintech Council to serve as a single point of entry into the federal financial regulatory system; allowing fintechs who meet certain requirements to be assigned one or more designated regulators through which regulatory action is funneled.

Georgia-based payments processing companies are responsible for processing more than two-thirds of United States electronic transactions, which equates to more than 57 billion transactions every year.

Georgia fintech and payments companies generate annual revenues of more than $72 billion and employ nearly 40,000 professionals in the state.

Loudermilk recently was chosen to serve as the Fintech and Payments Caucus co-chair.

“Several years ago, I led an effort in the Georgia state legislature to study how Georgia could incentivize and grow its technology sector," Loudermilk said. "As a result of this comprehensive study, along with several years of pro-growth policies emerging from the state capitol, Georgia has become a global economic force, especially in the financial technology [fintech] sector.

"Today, because of Georgia’s flourishing fintech industry, more than two-thirds of all electronic transactions in the United States are processed by a Georgia-based payments company.

“Georgia fintech and payments companies employ nearly 40,000 professionals in our state, and more than 130,000 around the world. In just two years, the number of these companies in Georgia has grown nearly 40 percent, earning Georgia the nicknames, ‘Transaction Alley’ and the ‘Silicon Valley of the South.’

“A major reason for this success is the business-friendly environment of our state, and it’s been noticed, as Georgia has repeatedly been named the number one state to do business.

"Just as I was able to help grow Georgia’s technology sector as a state legislator, I will continue to promote pro-growth policies at the federal level through this bipartisan caucus.

“With over 30 years in the IT sector, I am grateful for the opportunity to continue to use my experience in such an exciting and innovative field.”

The caucus is co-chaired by two Republican and two Democrat members of the House who work to ensure the positive growth of the fintech and payments processing industries. Rep. Barry Loudermilk (R-GA) issued the following statement after he was chosen to serve as a co-chair of the Congressional Fintech and Payments Caucus (CFTPC) for the 116th Congress:

“Several years ago, I led an effort in the Georgia state legislature to study how Georgia could incentivize and grow its technology sector. As a result of this comprehensive study, along with several years of pro-growth policies emerging from the state capitol, Georgia has become a global economic force, especially in the financial technology [fintech] sector.

"Today, because of Georgia’s flourishing fintech industry, more than two-thirds of all electronic transactions in the United States are processed by a Georgia-based payments company. Georgia fintech and payments companies employ nearly 40,000 professionals in our state, and more than 130,000 around the world. In just two years, the number of these companies in Georgia has grown nearly 40 percent, earning Georgia the nicknames, ‘Transaction Alley’ and the ‘Silicon Valley of the South.’ A major reason for this success is the business-friendly environment of our state, and it’s been noticed, as Georgia has repeatedly been named the number one state to do business.

"Just as I was able to help grow Georgia’s technology sector as a state legislator, I will continue to promote pro-growth policies at the federal level through this bipartisan caucus. With over 30 years in the IT sector, I am grateful for the opportunity to continue to use my experience in such an exciting and innovative field.”

Rep. Loudermilk will be serving alongside Rep. David Scott (D-GA) and two other co-chairs, yet to be selected.

Background:

The CFTPC is co-chaired by two Republican and two Democrat members of the House who work to ensure the positive growth of the fintech and payments processing industries. Georgia-based payments processing companies are responsible for processing more than two-thirds of United States electronic transactions, which equates to more than 57 billion transactions every year. Georgia fintech and payments companies generate annual revenues of more than $72 billion and employ nearly 40,000 professionals in the state. The CFTPC provides members of Congress with an opportunity to better understand these technologies and support this important part of Georgia’s growing economy.

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