Lenore Palladino is Senior Economist and Policy Counsel at the Roosevelt Institute.

Buried in New York Governor Andrew Cuomo’s just-released proposed budget for 2017-2018 is an increase of state licensing authority over “fintech” lenders—lenders to consumers and small businesses that operate online and largely outside of regulatory purview. Though innovative fintech lending is helping expand access to credit for consumers and small business borrowers, the sector’s high interest