Alert November 27, 2012

CFPB Launches Project Catalyst

The CFPB announced the launch of Project Catalyst, an initiative designed to encourage consumer-friendly innovation and entrepreneurship in markets for consumer financial products and services through outreach and collaboration. Through Project Catalyst, the CFPB plans to engage more closely with companies and entrepreneurs in the innovation community to establish firm lines of communication with innovators and understand new and emerging products in the market. Identifying the goals for Project Catalyst—outreach and collaboration—Director Richard Cordray stated that two approaches in its collaboration are promising: data sharing and disclosure testing. As part of the inaugural phase of Project Catalyst, three companies, BillGuard, Plastyc and Simple, have agreed to provide the CFPB with anonymized data about consumer behaviors and trends. The CFPB expects to use the data to better inform policy making decisions.