Thanks to the internet and smartphone applications, financial technology has raced ahead in global markets, outside the U.S.

A report by The Pew Charitable Trusts has found American consumers using mobile banking and payment apps, commonly called fintech, still have no protection by U.S. regulators, leaving users potentially exposed.

In Arizona, Attorney General Mark Brnovich is overseeing the nation's first financial technology sandbox, which allows companies to test out new products without excessive regulatory burdens.

Companies wanting to participate need to file an application with the AG's office to be considered.

"Our office would have access to not only to their financial records," Brnovich explained. "But they would have to come to us for approval process and with a plan to make sure that consumers weren't being harmed and they were complying with all other applicable state laws."

In the report, Pew examined regulatory approaches to financial technology and highlighted federal efforts already underway in Hong Kong, Singapore and Australia.