22 July 2017
visit www.avoka.com

OCC to offer fintech firms bank charter status

02 December 2016  |  10227 views  |  1 chess

The US Office of the Comptroller of the Currency (OCC) is to begin accepting applications from fintech companies to become special-purpose national banks.

During remarks at the Georgetown University Law Center, the Comptroller Thomas Curry said that the move would be in the public interest: “It is clear that fintech companies hold great potential to expand financial inclusion, empower consumers, and help families and businesses take more control of their financial matters.”

Companies applying for a charter will need to prove that they have a reasonable chance of success, appropriate risk management, effective consumer protection, and strong capital and liquidity.

Fintech firms in the US have been lobbying hard for the provision, which will enable them to operate across state lines without having to deal with multiple jurisdictions.

Pointing to the 4000 or so fintech firms in the US already competing with national and state banks, Curry said: "It will be much better for the health of the federal banking system and everyone who relies on these institutions, if these companies enter the system through a clearly marked front gate, rather than in some back door, where risks may not be as thoughtfully assessed and managed."

The OCC has published a paper discussing the issues and conditions that the agency will consider in granting special purpose national bank charters, which will be open for comment through to 15 January 2017.

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 05 December, 2016, 16:53

People say UBER is the world's largest taxi company and it doesn't own a single cab. But UBER says it's not a taxi company but a tech company. Remains to be seen how many fintechs want to get a license to become a bank when they can enjoy much higher valuations as a tech company.

1 thumb up! 1 thumb up! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

OCC sets up fintech innovation office

OCC sets up fintech innovation office

27 October 2016  |  11630 views  |  0 comments | 19 tweets | 14 linkedin
OCC may create innovation unit to help banks compete with fintech firms

OCC may create innovation unit to help banks compete with fintech firms

13 August 2015  |  11864 views  |  0 comments | 28 tweets | 10 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.finastra.comvisit vasco.com/news/PSD2-compliant-solutions

Top topics

Most viewed Most shared
German fintech factory FinLeap raises EUR39 millionGerman fintech factory FinLeap raises EUR3...
13299 views comments | 19 tweets | 15 linkedin
Mastercard to buy AI outfit BrighterionMastercard to buy AI outfit Brighterion
9444 views comments | 14 tweets | 20 linkedin
Barclays rides payments-as-a-service wave with investment in Form3Barclays rides payments-as-a-service wave...
8512 views comments | 16 tweets | 12 linkedin
hands typing furiouslyThe Digital Trade Chain: the blockchain tr...
8151 views 0 | 8 tweets | 16 linkedin
Mastercard and Scotiabank join Enterprise Ethereum AllianceMastercard and Scotiabank join Enterprise...
7007 views comments | 25 tweets | 15 linkedin

Featured job

Competitive base, bonus, benefits
London or South-East, UK

Find your next job