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New York sues OCC for allowing fintechs to become banks

This battle is brewing! The Office of the Comptroller of the Currency (OCC) opened up the application process for the National Bank Charter for Fintech companies in July 2018. “Providing a path for fintech companies to become national banks can make the federal banking system stronger by promoting economic growth and opportunity, modernization and innovation, and competition,” Comptroller Otting said. “It also provides consumers greater choice, can promote financial inclusion, and creates a more level playing field for financial services competition.” Source: https://www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-74.html However, not everyone is happy about this, with New York being the first state to sue the US Read more…

By Ferhan Patel, ago

3 Cryptocurrency Exchangers Could Be Breaking the Law

When it comes to Money Transmission Regulations, don’t mess with the US.   Seriously! The new Virtual Markets Integrity Initiative Report, cited 3 exchangers, Binance, Gate.io, and Kraken for “possibly operating unlawfully in New York”.  The New York Attorney General will now be referring these exchangers to the New York Department of Financial Services. Last week, a Federal judge in Brooklyn said that SEC rules apply to initial coin offering. Source: https://www.forbes.com/sites/michaeldelcastillo/2018/09/18/new-york-attorney-general-warns-kraken-cryptocurrency-exchange-could-be-breaking-the-law/amp/

By Ferhan Patel, ago

How Stripe built a Powerhouse Payment Platform Online and Now Going Offline

I remember many years ago talking with one of the early investors in Stripe.  He told me that Stripe built a PSP/PF platform and their target market was Developers.  My initial reaction was, “another gateway”, as there were already so many on the market.  Companies were already building on top of Vantiv and Wells Fargo.  In retrospect, I was so wrong. However, Stripe did something remarkably different.  By targeting Developers, they realized that Developers were the decision makers most of the time when a business owner asks them to “setup payment processing for me”.  With Stripe, developers were now able Read more…

By Ferhan Patel, ago

7 Things to Consider Before Launching a Fintech Startup

Fintech is here to stay. Fintech is all about solving pain points we all experience. It’s making an impact in all avenues in our life.  Fintech is not reinventing the wheel, but in fact, improving the Customer Experience as a whole.  It’s improving our spending habits, providing choice, faster access to capital, access to better services. For example, getting a loan is a standard process.  You go to the bank, fill out some forms, and the loan officer will get back to you in a few days to determine if you qualify.  Fintech’s have improve the collection and validation process, now with Read more…

By Ferhan Patel, ago

The Fintech Banks Are Coming: Why You Should Care

Reposted from: https://www.forbes.com/sites/donnafuscaldo/2018/09/13/the-fintech-banks-are-coming-why-you-should-care/ The fintech banks are coming. With regulators accepting applications from financial technology startups for national bank charters, traditional banks are going to see a lot more competition. Potentially bad news for them. But for consumers, it could be a win if it results in better service and lower costs. The influx of bank fintechs is already happening, with fintech banks Simple, Chime, Varo and Moven offering checking accounts, overdraft protection, savings accounts, and direct deposit. Bigger name financial technology companies including Social Finance, Wealthfront, and PayPal are gauging interest in entering the fray. SoFi, Stash Getting Bank Accounts Ready Read more…

By Ferhan Patel, ago