“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 treasury.  This is just the beginning, as all states that require Money Transmitter Licensing (MTL) will feel cut out, and that their financial consumers can be ‘exposed to a greater risk of exploitation’ because of the Fintech charter.  This is highly debatable.

The benefits for new Fintech’s companies is obvious.  1 Fintech Charter Application instead of 48 individual license applications (not to mention the time, human resources, and costs involved).

Read more at: https://www.engadget.com/2018/09/17/new-york-sues-us-treasury-fintechs-banks/

The post New York sues OCC for allowing fintechs to become banks appeared first on Ferhan Patel - Fintech | Growth | Product.