The Office of the Comptroller of the Currency (OCC) will
allow fintech companies to apply for national bank charters but
it remains to be seen how many take it up on the offer.
While this is a move that the industry has craved for some
time, several questions remain unanswered including whether the
regulator has the authority to make this decision and whether
the individual regulators that currently regulate fintechs on a
state-by-state basis will object. Crucially, will companies
applying for a bank charter be required, or able, to provide
contingency plans to navigate financial stress.
Fintech is the future, said Kunal Seghal, chief executive of
small business lending platform Thrive, it helps drive
efficiency and the movement of money – which is the
essence of financial services. "Whether it is payment funding
or wealth management, there are benefits to the overall
economy, to innovation, and importantly, to the