The Regulatory System of the Future

The author proposes new regulatory structures and principles for the future of small business lending, particularly in an era of big data and artificial intelligence—drawing lessons from the United Kingdom and China. How can a new regulatory framework both protect small businesses and encourage innovation, recognizing that many of the new players will look different than traditional lenders? Optimal structures require bold actions to streamline the overlapping and sometimes contradictory jurisdictional issues. Regulators must confront thorny questions raised by the use of massive amounts of data on small businesses and their owners, and the use of artificial intelligence to deliver new products and services.