Fed's Williams warns on risks of financial technology

Cautious outlook: Williams says fintech could become a source of new, more powerful platforms to prey on consumers on a massive scale.

SAN FRANCISCO: A top Federal Reserve official on Tuesday warned that while financial technologies that enable online loans, digital currencies or other innovations hold great promise, they must be regulated with an eye to protecting consumers from unintended consequences.

"It’s not that regulators are here to call the cops on the party; we’re here to make sure no one jumps off the roof," San Francisco Fed President John Williams said in remarks prepared for delivery to the LendIt USA 2016 conference here. "And while we see the potential in innovation, we’re also looking at the other side of the coin."