U.S. bank regulator allows fintech firms to seek federal charter

share save 171 16 - U.S. bank regulator allows fintech firms to seek federal charter

Reuters | Michelle Price, Pete Schroeder | July 31, 2018

cryptocoins - U.S. bank regulator allows fintech firms to seek federal charterWASHINGTON (Reuters) - A U.S. bank regulator said on Tuesday it would start accepting national charter applications from financial technology companies, giving so-called fintech firms a path to federal oversight for the first time.

The move by the U.S. Office of the Comptroller of the Currency (OCC) will be cheered by the likes of OnDeck Capital Inc (ONDK.N), Kabbage and LendingClub Corp (LC.N) because it opens the door to operating nationwide under a single licensing and regulatory regime instead of a patchwork of state licenses.

The decision came hours after the Treasury Department endorsed the approach. Effective immediately, the OCC will accept applications from non-depository fintech companies for a special purpose national bank charter.

The regulator said successful applicants would be supervised similarly to comparable banks, and companies must provide a contingency plan for how they would navigate financial stress that could threaten their operations.

See:  China’s fintech firms eye overseas IPOs to fund growth as regulations tighten at home

There is no current federal regulatory regime for fintech firms, meaning online lenders must seek licenses in every state they wish to operate, an onerous and expensive process, or partner with traditional banks.

The OCC charter would allow fintech firms to operate independently across the country under a single federal license.

“If they can create a national standard of sorts and harmonize that regulatory burden then that will provide a real benefit to America’s small businesses and hopefully in the long run decrease of the cost of credit,” said Scott Stewart, chief executive of trade group Innovative Lending Platform Association.

A fintech charter was first floated by the OCC in 2016. State regulators have vigorously opposed the idea, saying it exceeds the OCC’s statutory authority.

The New York Department of Financial Services and the Conference of State Bank Supervisors (CSBS) unsuccessfully sued the OCC last year to block the charter.

In a statement, the New York regulator said the OCC decision will impose an “unjustified” federal regulatory scheme on the state regulatory landscape.

The CSBS did not rule out further litigation. “State regulators are keeping all options open to stop this regulatory overreach,” the group said in a statement.

The Independent Community Bankers of America has also raised concerns, saying such a charter may allow fintech firms to circumvent tough banking rules.

See:  Australia and UK set up FinTech Bridge to deepen collaboration between governments, regulators, and industry bodies

But the Treasury and many conservative Republicans see promoting fintech as a way to boost small companies and create jobs.

In a report earlier on Tuesday, the Treasury recommended the charter as a way to support non-bank financial institutions and foster technology-driven innovation.

But the Treasury recommended against allowing fintech firms to collect government-insured deposits under such a charter.

Continue to the full article --> here


NCFA Jan 2018 resize - U.S. bank regulator allows fintech firms to seek federal charterThe National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, STO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

Click for News:

latest news - U.S. bank regulator allows fintech firms to seek federal charter

 

Guest Post | July 14, 2020 Technology is never staying in one place and is regularly developing. You might think that the technologies that you use now cannot be improved and that there is nothing that can be better than this, but then in a couple of days, you read a new article about some exceptional discovery, and you realize that this is not it. Technology is an integral part of your whole life. Just think for a moment. You buy your morning mocha only with a wave of your watch, send money to a person that is hundreds of miles away from you, and complete many other money transactions thanks to the improvements in the financial technology field. See:  Can Fintech Make the World More Inclusive? Over the last couple of years, fintech companies have been evolving extremely fast, and recently they have begun to manage student loan debt. They offer students everything that they possibly can – an opportunity to become fluent in financial literacy, loan refinancing, educate the students in the ways they can pay off their loans. However, such companies are not suitable for every student. But the good thing is that they provide some outstanding ...
Read More
financial technology - U.S. bank regulator allows fintech firms to seek federal charter
Betakit | Meagan Simpson | Jul 14, 2020 Wealthsimple is set to expand into the cryptocurrency trading space with the launch of Wealthsimple Crypto. The new product offering will provide commission-free trading of Bitcoin and Ethereum through a mobile trading app. The Toronto-based FinTech startup has launched Wealthsimple Crypto in private beta and will roll out the product to users by invitation over the coming weeks. “It’s important that [Wealthsimple] started thinking about the role that crypto is playing in the financial services ecosystem.” Wealthsimple Crypto will be offered by Wealthsimple Digital Assets Inc., a newly-formed, wholly-owned subsidiaries of Wealthsimple Financial Corp. Wealthsimple registered the business earlier this year; one of three, in preparation for the launch of a variety of new services. See:  Consilium Crypto Saves 10% on Transactions for Institutional Digital Asset Traders According to Wealthsimple, Digital Assets is a virtual currency dealer money services business authorized by Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). It is also reportedly working with the Ontario Securities Commission (OSC) on a regulatory sandbox framework for offering Wealthsimple Crypto to Canadians. “Crypto is already super popular and growing in its popularity, and growing in its credibility. And the reality in ...
Read More
Wealthsimple crpyto - U.S. bank regulator allows fintech firms to seek federal charter
Inc | Don Reisinger | Jul 11, 2020 Why the Amazon founder's simple rule might inspire innovation--not recreation--in your company. Amazon CEO Jeff Bezos has plenty of rules for his company to follow, but arguably none of them may be as impactful on small business success as his "country club" rule. In his 2013 book The Everything Store, author Brad Stone recounted how Jeff Bezos would often say he didn't want Amazon to become "a country club" where people who want "to retire" land after they work hard in their careers. He'd reference Microsoft when talking about the "country club" mentality, Stone wrote, and believed Amazon should keep its fast-moving and constantly innovating culture. In an interview with CNBC earlier this year, former Amazon executive John Rossman referenced the time he heard Bezos make the same country club analogy and explained it as follows: "The point being that even if you're doing well in the marketplace, you always have to work hard and not hold back to ensure that you and your staff are creating a future that's every bit as bright as the one you may have inherited." Like it or not, your business needs to stay hungry and stay away from country clubs. Just ...
Read More
Jeff Bezos image - U.S. bank regulator allows fintech firms to seek federal charter
PYMTS | July 10, 2020 Open banking comes in several flavors, yet its rise requires robust Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, Zac Cohen, chief operating officer at identity verification firm Trulioo told Karen Webster in a recent interview. As financial institutions (FIs) work with FinTechs, they need to know that these tech-nimble startups are not only enabling access to customers’ account data but also in a manner that embraces KYC and AML. The end goal: to speed innovation toward new products and services while keeping fraudsters out. Regulation Vs. Market Forces The need for both innovation and security comes at a time when open banking is gaining a foothold in the United States due in part to the pandemic. It’s also growing across the pond in the European Union, albeit with some important distinctions. “In recent years, we’ve seen the heavily regulated version of open banking in the E.U.,” Cohen said. “It’s been a coordinated effort — regulatory-driven, highly standardized and thrust upon the banking community. In the U.S., it’s been an organic-but-inevitable exercise, driven primarily by innovation and consumer demand.” That’s due in part to the fact that America has a more fragmented banking and ...
Read More
digital ID aids access - U.S. bank regulator allows fintech firms to seek federal charter
NCFA Canada | By Samuel He | July 11, 2020 Dealing with finances is time-consuming and difficult, especially when it involves contradictory goals, like paying off debt while investing for the future. Unfortunately, financial literacy is not emphasized in today’s educational curriculum. Reports show that only 16% of Millennials qualified as “financially literate,” and over 75% of Canadians stated that they were not confident that they will ever achieve their financial goals. Several companies have taken initiatives to offer assistance in this field. One company is Finally, a free online financial planning stimulator will provide guidance to users about their financial goals. Another is NuMoola, a family-focused consumer banking app that helps children develop good money habits using real money and gamified education. Finally offers a DIY Financial Planning Simulator that helps users customize a tailor-made plan to best fit their needs. The simulator uses multiple financial algorithms and machine learning to make the process straightforward and efficient, creating a plan for the user in as little as 20 minutes. A basic financial plan can be created for free, with the user having the option to subscribe for additional value-added services. Some of these services include automated money movement, access ...
Read More
FFCON20 Fintech Draft Finally vs Numoola - U.S. bank regulator allows fintech firms to seek federal charter
Montreal in Technology | Steve La Barbera | Jul 6, 2020 Perhaps Montreal’s best known fintech, Flinks has today announced another $16 million flowing into its coffers. That includes just over $5 million in debt, and and $11 million series A round led by National Bank’s corporate venture capital arm, NAventures, which was also the source of the loan. The round also included participation from Intact Ventures, Luge Capital and Panache Ventures. “The digitization of financial services is more than just a trend. It’s a profound reshaping of the industry, driven by rapidly changing consumer needs in a global context. Flinks is uniquely positioned to help businesses accelerate their digital transformation,” said Flinks co-founder and CEO, Yves-Gabriel Leboeuf. “This investment from our strategic partners allows us to jumpstart the next phase of our mission: consolidating our position in our home market and building new innovative data products that will allow us to tackle global demand.” The funding will be used to help Flinks bring its services to new verticals, such as wealth management, and continue its geographic expansion to establish itself as a market leader in those new geos. By developing and leveraging a powerful, secure data exchange network, Flinks ...
Read More
Flinks celebration - U.S. bank regulator allows fintech firms to seek federal charter
Financial Post | Kevin Carmichael | July 10, 2020 Adam Felesky, chief executive of Portag3 Ventures LP, the venture-capital arm of Power Corp. of Canada, was primed to put his home country on the leading edge of finance at the end of last year. “We’re on a mission to build global champions from a Canadian base,” Felesky told the TechCrunch website in early December when Portag3 announced it had raised $427 million for a new fund aimed at digital finance startups. The “majority” of that money remains unallocated, Felesky told me this week, but that could soon change. The social distancing demanded by COVID-19 has sped up the shift to a digital economy, a boon for outfits such as Toronto-based Portag3, which specializes in identifying startups that have plans to disrupt finance. The pandemic caused a terrible recession, but anyone focused on digital technology barely noticed. “We’ve been playing offence,” Felesky said during a Zoom interview organized by the National Crowdfunding & Fintech Association. “We’re excited about the environment right now. There are lots of opportunities.” Without access to data, digital upstarts have little chance of stealing market share from legacy institutions, even if they offer a better service Unfortunately ...
Read More
Adam Feleskey Portag3 ventures - U.S. bank regulator allows fintech firms to seek federal charter
TFI | Sara Anderson | July 10, 2020 Are you interested in providing students with work opportunities that can benefit them, and your business, during Canada’s economic recovery? If you’re in HR, talent management, or responsible for recruitment within your organization, this is a great initiative and opportunity to help you achieve your goals. Toronto Finance International has partnered with The Conference Board of Canada (CBoC) and Business + the Higher Education Roundtable (BHER) to improve and expand student work-integrated learning (WIL) in Canada. Our aim is to assess and support student recruitment, training, and future talent needs during our country’s economic recovery from COVID-19. Our partners are developing a user-friendly resource hub to support employers in adding or expanding student talent within their organizations, and we need your input. We’re facilitating a series of virtual consultations and invite you to join us for a candid discussion about work-integrated learning. You’ll connect with a pan-Canadian network of senior leaders focused on developing WIL opportunities and tools that will benefit businesses across the country. You’ll help shape a toolbox for Canadian businesses and gain advanced access to BHER’s online toolkit of tips, tricks and resources on using WIL to address your ...
Read More
Business and higher education round table - U.S. bank regulator allows fintech firms to seek federal charter
NCFA and FFCON20 | Release | July 8, 2020 TORONTO — July 8, 2020 — The National Crowdfunding & Fintech Association (NCFA), Toronto Finance International (TFI), and partners are pleased to announce that together with their sponsor, KABN Systems North America Inc. (“KABN”), attendees of FFCON20 DIGITAL, taking place from July 9 through August 27 inclusive, will receive an exclusive Liquid Avatar FFCON 20 iconic digital pin to celebrate their attendance at the event. The FFCON20 digital pin is the first event pin offered by Liquid Avatar (www.liquidavatar.com) in support of its new app to power users to verify, manage and monetize their digital identity. Liquid Avatar, a KABN product offering, provides users with the ability to verify, manage and control their digital identity through an easy to use app or web page. Using high quality icons, users can create their digital identity and verify themselves using KABN’s bank grade validation process and biometrics, supported by Blockchain technologies. “We’re honored to be able to present our first Liquid Avatar event pin at FFCON 20 DIGITAL,” said Mr. Ben Kessler, CEO – KABN. “Liquid Avatar gives users control over the use of their digital identity and data providing them with the ...
Read More
FFCON20 Liquid Avatar pin resize - U.S. bank regulator allows fintech firms to seek federal charter
Attend One or All 8 Weekly FFCON20 Sessions! Links:  Program | Speakers | Experience | Vote in Fintech Draft Attend Week 1:  Thursday, July 9 from 1:45PM - 4:45PM EDT Scaling Fintech Funding, Innovation and Competition Attend this Session for $25! (Expires July 7 midnight) The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org ...
Read More
FFCON20 Digital RISE image 1 - U.S. bank regulator allows fintech firms to seek federal charter

 

share save 171 16 - U.S. bank regulator allows fintech firms to seek federal charter