About the Office

The Strategic Hub for Innovation and Financial Technology (FinHub) coordinates the agency’s oversight and response regarding emerging technologies in financial, regulatory, and supervisory systems, including in the areas of distributed ledger technology (for example, digital assets), automated investment advice, digital marketplace financing, and artificial intelligence/machine learning. Through internal and external engagement, FinHub helps shape the SEC’s approach to technological advancements in the financial industry.

FinHub is comprised of “delegates” from Divisions and Offices across the agency, who serve as internal and external subject matter experts for financial technology (FinTech) matters. FinHub utilizes and augments existing institutional expertise concerning leading-edge technologies and innovation, which foreshadow the future direction of the financial industry.

FinHub Announces New Peer-to-Peer Meet-ups

FinHub is excited to resume virtual peer-to-peer meet-ups (P2Ps) with members of the FinTech community. FinHub initiated P2Ps in 2019 as in-person meet-ups, but transitioned to a virtual format in 2020 due to COVID. Both approaches offered members of the FinTech community the opportunity to have informal conversations with FinHub staff about general topics of interest, to make presentations about their work, or to ask questions about FinHub and the SEC.

Building on the success of these prior efforts, FinHub is thrilled to again host P2Ps in a virtual format over the next few quarters. Our P2Ps this year will be organized around topical narratives that illustrate the impact that FinTech innovations have on markets, market participants, and investors. Click here for more information.

Programs and Services

  • FinHub serves as a public resource for information about the SEC’s views and actions related to FinTech innovation. The public can request meetings and other assistance from FinHub relating to FinTech issues arising under the federal securities laws.
  • FinHub serves as an internal resource within the SEC, engaging with staff and coordinating work on issues related to financial innovation.
  • FinHub works with a wide range of market participants and serves as the SEC’s FinTech liaison to policymakers and regulators, both foreign and domestic.

Blockchain/Distributed Ledger

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In recent years, the SEC has encountered a number of issues relating to distributed ledger technology and blockchains. The term distributed ledger refers to databases that maintain information across a network of computers in a decentralized or distributed manner. These networks commonly use cryptographic protocols to ensure data integrity and consensus mechanisms to ensure data congruity. Blockchains are one type of distributed ledger, and they are often used to issue and transfer ownership of digital assets that may be securities, depending on the facts and circumstances. To learn more about the SEC’s activities in this evolving space, click below.

Digital Marketplace Financing

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Digital marketplace financing generally refers to financing methods that do not use traditional financial institutions as intermediaries. The financing can be in the form of loans, often called online marketplace lending, or equity or equity-like securities, often called crowdfunding. The SEC has been addressing digital marketplace financing activities related to funding portals, platforms, and investments for some time. To learn more about the SEC’s activities in this space, click below.

Automated Investment Advice

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Automated investment advisers/Robo-advisers are investment advisers that typically provide asset management services through online algorithmic-based programs. Since their introduction, the SEC has been involved with regulating these market participants. To learn more about the SEC’s activities in this space, click below.

Artificial Intelligence/Machine Learning

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Machine learning and artificial intelligence refers to methods of using computers to mine and analyze large data sets. This area of technological innovation is moving rapidly and the extent of related SEC activity is expanding. To learn more about the SEC’s activities in this space, click below.

Valerie A. Szczepanik
Director, Strategic Hub for Innovation and Financial Technology
 

Contact FinHub
202.551.FHUB (3482)
 

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