fbpx
PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Will They or Won’t They: The OCC’s Fintech Charter

Sarah Grotta by Sarah Grotta
September 29, 2017
in Analysts Coverage
0

Close up of female accountant or banker making calculations. Savings, finances and economy conce

1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

If you will recall, last year the OCC proposed a new banking charter that if made available, could be used by tech companies to participate in banking activities more directly.  As reported in the New York Law Journal, the State of New York was not pleased and sued the OCC:

The U.S. Office of the Comptroller of the Currency’s plan to offer a special-purpose bank charter for financial technology companies “undermines” the Department of Financial Services’ regulatory authority in New York, the state agency argued in court documents.

“The Fintech Charter Decision is an unlawful assertion of power that usurps New York consumer protection laws and would preempt plaintiff’s ability to regulate any number of the over 600 non- depository institutions she currently regulates,” wrote Matthew Levine, the executive deputy superintendent for enforcement at the department.

 The U.S. Attorney representing the OCC said the suit should be dropped because the so-called Fintech Charter doesn’t yet exist, and it might not ever become available.

Acting U.S. Attorney Joon Kim, representing the defendants, argued that DFS lacks standing in the complaint because the OCC’s regulations addressing the special-purpose national bank charter have resulted in no injury-in-fact, because the office has not reached a final decision on whether it will offer the specific type of national bank charter that does not take deposits and conducts activities other than fiduciary activities. The U.S. Attorney’s Office also argues that the complaint should be dismissed for failure to state a claim.

 Some tech companies including Square and SoFi are not waiting around for this to get settled.  They have both recently applied for industrial loan charters to support their business activities.

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

Read the full story here

Tags: FintechOCC
1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily
    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    The Window of Corporate Banking Opportunity Is Now Open

    The Window of Corporate Banking Opportunity Is Now Open

    May 27, 2022
    Why Is Tax Automation Important for Small Businesses?

    Why Is Tax Automation Important for Small Businesses?

    May 26, 2022
    On-demand Webinar - SMB Banking Disruption and Innovation Webinar

    On-demand Webinar: What SMBs Want From Digital Financial Experience

    May 25, 2022
    Why Partnering with an Agile Payment Processor Is the Smart Move 

    Why Partnering with an Agile Payment Processor Is the Smart Move 

    May 24, 2022
    Secure and Transparent Data Portability with Open Finance

    Secure and Transparent Data Portability with Open Finance

    May 23, 2022
    BNPL for B2B: Exploring Business Financing Options  

    BNPL for B2B: Exploring Business Financing Options  

    May 20, 2022
    Multi-Layered Fraud Protection for All Merchants 

    Multi-Layered Fraud Protection for All Merchants 

    May 19, 2022
    Strategic Cash Flow Forecasting for SMBs

    Strategic Cash Flow Forecasting for SMBs 

    May 18, 2022

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • COVID-19
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result