Industry voices concerns over OCC’s new fintech charter

Author: John Crabb | Published: 6 Aug 2018

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 financial...