Technology companies and banks have long collaborated to deliver financial products and services. The Office of the Comptroller of the Currency – the primary regulator for national banks and federal savings associations – now proposes to allow financial technology companies to become “banks” in their own right. While the OCC has been pursuing a program to foster “responsible innovation” in banking for many months, the announcement that it would soon be prepared to accept applications for charters has surprised industry and fellow regulators alike. A new charter that would allow financial technology companies, such as marketplace lenders, to avoid the burdens of complying with state-bystate licensing regimes or the oversight of an FDIC insured bank sponsor, could be compelling.
Join us for a lively discussion of the prospects of the OCC special purpose fintech charter. Will the concept survive the many challenges it can be expected to attract, including from fellow regulators? What kind of company would qualify for such a charter and what are the threshold requirements? What are the pros and cons of such a charter? How might an OCC fintech charter reshape the landscape of financial services?
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