Global fintech and funding innovation ecosystem

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

 

Economy | Jun 12, 2024 Canada’s new capital gains tax hike passes despite opposition, raising concerns about economic impacts. The capital gains tax rate in Canada was recently passed (vote 208-yes to 118-no) to increase significantly, from 50% to 66.67%, which comes into effect Jun 25, 2024.  The Liberal government is implementing this move as part of its attempts to boost income and enhance the neutrality of the tax system. But this approach has sparked a contentious discussion among lawmakers, economists, and business executives. Economic Impact and Criticisms The higher capital gains tax, according to economists, may discourage investment even more, accelerating Canada's declining productivity and competitiveness. Higher divestment taxes are feared to damage Canada's competitive advantage by incentivizing entrepreneurs to found their startups in countries with more innovation-friendly tax laws. See:  Canada’s Capital Gains Tax Changes Sparks Economic Debate Beata Caranci, Chief Economist at TD Bank said: "Limiting the prosperity of Canadian enterprises through additional levies will restrict prospects and job creation." The Canadian government has allocated a portion of its increased expenditure to programs that support economic growth, like expenditures in technology research and development, in an effort to lessen the impact of the new taxes. Critics counter ...
Freepik rawpixel.com taxes - U.S. bank regulator allows fintech firms to seek federal charter
Open Banking Jun 12, 2024 CFPB Publishes Final Rule on Personal Financial Data Rights The Consumer Financial Protection Bureau (CFPB) has published final rules for personal financial data rights (PDF)| Newsroom announcement, which focuses on recognizing industry standard-setting groups.  The approved rule is a part of a larger initiative to enhance consumer's control over their financial data and promote open banking by implementing Section 1033 of the customer Financial Protection Act.  Here's what you need to know. 10 Takeways 1.  The final regulation will go into force on July 11, 2024. This gives companies one month to get ready for compliance. 2.  The rule lays out the procedure by which industry organizations can be recognized by the CFPB. Consensus standards will be created by recognized organizations to help with the new Personal Financial Data Rights rule's compliance. The CFPB also released this guide. 3.  Five essential characteristics that standard-setting bodies must exhibit are: transparency, openness, balance, due process and appeals, and consensus. These characteristics ensure fairness, inclusivity, and transparency of the standards that are set. See:  Open Banking: Revolutionizing Financial Data Sharing 4.  This is an open role opportunity.  All interested parties, including consumer advocacy organizations, app developers, and different ...
Freepik data sharing rights - U.S. bank regulator allows fintech firms to seek federal charter
MaRS | Jun 11, 2024 MaRS Discovery District Job Cuts 20 Jobs and Looks to Operate a Leaner Business Model Approximately 20 positions, including several top-level responsibilities, were eliminated as a part of a recent major restructure at MaRS Discovery District, one of Canada's leading government funded innovation support organizations. Amidst financial challenges, MaRS looks to reduce hierarchy and move towards a more agile and lean structure in order to better allocate resources to programming that supports founders and encourages ecosystem engagement. See:  Corporate Venture Capital in Canada: Insights and Challenges Since its founding in 2000, MaRS has expanded its support to include a variety of tech industries, but its initial focus was on the medical and allied sciences. It has been crucial in helping businesses with advisory services and in creating venture capital projects like Graphite Ventures and the MaRS Investment Accelerator Fund. Alison Nankivell, CEO, MaRS stated: “Our path forward necessitates changes toward a more agile and lean organizational structure that reduces hierarchy and leadership roles in favor of a reallocation of resources to support programming that more effectively supports founders, fosters even greater ecosystem collaboration, and ultimately increases our impact.” Financial Overview and Key Departures Since 2019, ...
Freepik master1305 restructuring - U.S. bank regulator allows fintech firms to seek federal charter
Tokenization | Jun 11, 2024 US Congress considers the regulatory challenges and benefits of tokenization On June 5, 2024, Washington lawmakers discussed the "Tokenization Report Act of 2024" (HR 8464), which is sponsored by Rep. William Timmons and co-sponsored by Rep. Ritchie Torres in the 118th Congress. The Act mandates a thorough report on the advantages and disadvantages of asset tokenization using blockchain technology, the variations between blockchain networks, the current level of interoperability, and international regulatory strategies. The Federal Deposit Insurance Corporation, the Comptroller of the Currency, the National Credit Union Administration Board, and the Board of Governors of the Federal Reserve System are to jointly submit this report. Within 180 days after the act's passage, the report must be given to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services. See:  U.S. House passes FIT21 with Bipartisan Support Strong regulations are required to control the tokenization of RWAs, as recent talks in Washington have shown. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), among other legislative and regulatory organizations, are investigating the applicability of current securities and commodities rules to tokenized assets. The classification of digital ...
Tokenization of RWA Tokenization Report Act of 2024 - U.S. bank regulator allows fintech firms to seek federal charter
Jun 11, 2024 Key Takeaways: Data breaches can severely impact businesses by eroding customer trust, halting operations, and causing legal issues. Implementing strong passwords, multi-factor authentication, and regular software updates are essential steps in securing your data. Educating employees on data security practices and using reputable IT services can significantly enhance your data protection measures. Have you ever wondered what would happen if your customer database or financial records were suddenly exposed online? Data breaches are a harsh reality for businesses of all sizes and entrepreneurs; the consequences can be particularly damaging. A single attack can erode customer trust, halt operations, and even lead to legal repercussions. But don't panic! This guide is your roadmap to data security. Continue reading to learn more. What Is Data Protection?  Data protection refers to the set of practices, protocols, and technologies employed to secure personal, business, and customer data from unauthorized access, data breach, and other forms of compromise. It encompasses various strategies aimed at safeguarding the confidentiality, integrity, and availability of data. These strategies include encryption, access controls, and regular security audits. For entrepreneurs looking to enhance their data protection, hiring Kenyatta Computer Services or other service providers can offer expert assistance in ...
Data security Center - U.S. bank regulator allows fintech firms to seek federal charter
Remote Work Insights | Jun 10, 2024 The Effects of Global Digital Jobs on Canadian Markets The World Economic Forum (WEF) has published a white paper last month called 'Realizing the Potential of Global Digital Jobs' covering the possibilities, difficulties, and solutions connected with global digital jobs, as remote work continues to reshape the global labour environment. This article looks at the effects on fintech businesses in Canada, unintended consequences for urban commercial districts and a range of remote working trends to stay on top of. Global Digital Jobs The WEF report anticipated that by 2030, there will be 92 million remote digital workers globally, up from 73 million that exist today. This indicates a considerable shift towards remote work.  The number of people in economies with lesser incomes that have higher levels of education are growing.  Educated individuals capable of filling global digital positions have surged in nations like India and Nigeria.  By optimizing talent use and lowering skill mismatches across nations, global digital jobs could increase global GDP by $11 trillion by 2030. This is an interesting trend, given that there's currently a skills shortage across a number of industries in Canada.  Looking at Figure 1 chart above, ...
WEF Realizing the potential of global digital jobs cover - U.S. bank regulator allows fintech firms to seek federal charter
Jun 10, 2024 Introduction Writing an invitation letter for a visa application can be a challenging task, especially if you're unfamiliar with the legal requirements and formalities involved. For residents of Ontario, Canada, creating a compelling and legally sound invitation letter is crucial. This comprehensive guide will walk you through the process of drafting an effective invitation letter and explain how an online notary services in Ontario can assist in notarizing the document to enhance its credibility and acceptance. What is an Invitation Letter? An invitation letter is a formal legal document written by a host in Canada inviting a guest to visit for a specific purpose, such as tourism, business, or family events. This letter is often a key component of a visa application, as it helps immigration officers verify the legitimacy of the visit and the relationship between the host and the guest. Why You Need an Invitation Letter in Ontario In Ontario, an invitation letter is commonly required for visitor visa applications. It helps immigration authorities assess the validity of the visitor's intentions and the host’s ability to support the guest during their stay. A well-drafted invitation letter can significantly boost the chances of visa approval by ...
Freepik Notary of the public - U.S. bank regulator allows fintech firms to seek federal charter
Jun 9, 2024 In the complex world of business, having the right professionals in your network is crucial. One such indispensable professional is a business contract lawyer. Whether you're a startup or a well-established enterprise, the expertise of a contract lawyer can be a game-changer for your business. Here's why: Expertise in Drafting and Reviewing Contracts A commercial contracts lawyer has the special knowledge needed to draft and review contracts accurately. Their expertise ensures that all the necessary details are covered, reducing the risk of future disputes. With their help, businesses can be confident that their interests are protected, and all agreements are clear and fair. They carefully check every clause and term, making sure everything is legally sound and beneficial for the parties involved. Risk Management When it comes to managing risks in business, a contract lawyer is a valuable asset. They help identify potential issues before they become big problems. For instance, a contract lawyer can point out terms in a contract that might expose your business to unnecessary risks. By addressing these risks early, they help keep your business safe and avoid costly mistakes. In essence, having a contract lawyer means you have someone who is always ...
Pexels Sora Shimazaki Lawyer working in his office - U.S. bank regulator allows fintech firms to seek federal charter
Crypto M&A | Jun 7, 2024 Robinhood Flies in the Face of the SEC and Acquires Bitstamp Crypto Exchange After Receiving Wells Notice While under crypto-related regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC), Robinhood has announced the acquisition of the European cryptocurrency exchange Bitstamp for $200 million to boost Robinhood's crypto trading capabilities and expand its customer base in Europe. See:  SEC Issues Wells Notice to Robinhood Over Crypto Bitstamp Acquisition Bitstamp, founded in 2011 and based in Luxembourg, is a top 20 centralized crypto exchange with a reputation for reliability and security. Institutional clients trust Bitstamp for its extensive order books, dependable trade execution, high quality API access, institutional lending, staking, and the white label solutions with Bitstamp-as-a-service. Has more than 50 active licenses and registrations worldwide and can push clients to Robinhood from the US, EU, UK, and Asia. Daily trading volume of approx. $315 million serving more than 4 million customers in 100 countries according to Coinmarket cap Robinhood's Crypto Expansion In 2023, Robinhood reported $1.9 billion in total revenue, a 37% year-over-year gain. View full Q4 and 2023 financial results here. 23 million active, funded users. See:  U.S. House passes FIT21 with Bipartisan ...
Robinhood acquires bitstamp - U.S. bank regulator allows fintech firms to seek federal charter
Jun 7, 2024 Becoming a small business owner can be a dream come true. It means independence, doing things your way, and if your business model works, it can be the career move you needed to stay motivated when you wake up every morning. Opening your small business and keeping it going in those early years costs money. Whether it’s paying a lease for a storefront, making sure suppliers get paid, or just giving yourself a runway to start finding clients and earning revenue, you need some cash up front to get the ball rolling. One way to raise that capital is by taking out a personal loan. A personal loan is a line of credit that you can use for any number of reasons. Unlike a mortgage or car loan, there are no hard rules about how you can spend the money. The interest rate is typically lower than a credit card. The loan can either be unsecured or require collateral. It can be a big risk taking out a personal loan to fund your small business, whether you’re just getting started or trying to keep your business afloat. Once you involve your personal finances, you’re on the hook ...
Unsplash Tim Mossholder Yes we are open sign - U.S. bank regulator allows fintech firms to seek federal charter

 

Leave a Reply

Your email address will not be published. Required fields are marked *

thirteen − nine =