Fintech Firms Get Chance to Apply for Banking License(wsj.com)
wsj.com
Fintech Firms Get Chance to Apply for Banking License
https://www.wsj.com/articles/fintech-firms-get-chance-to-apply-for-banking-license-1489599873?mod=e2tw
11 comments
Does this mean that fintech firms get taxpayer bailouts?
So they might actually have a level playing field now?
Not exactly. The proposed charters are limited compared to traditional bank charters, but it's a start.
So what will the Fintech firms gain from having a Banking license under this charter?
New fintechs who want to move money have to obtain a Money Service Business license in every state where they operate. In almost all cases, that means they have to get 48ish MSB licenses (a state or two don't require them). Each one can be both complicated and expensive to obtain and maintain.
This new license would let those fintechs instead obtain a single license (and set of rules, and costs, etc) for nationwide use.
This new license would let those fintechs instead obtain a single license (and set of rules, and costs, etc) for nationwide use.
This is still early in the process. It will take some time before we know what the final regulation is. The comment period is between now and January of next year.
Interesting, now they get to constantly get scrutinized by the OCC, which, by the way, is no fun. Those audits can end up being brutal.
Interesting opportunity for a bunch of them.
Have a non-paywall source or copypasta?
No, but you could look at the Gov site
"OCC Issues Draft Licensing Manual Supplement for Evaluating Charter Applications From Financial Technology Companies, Will Accept Comments Through April 14"
https://www.occ.treas.gov/news-issuances/news-releases/2017/...
"OCC Issues Draft Licensing Manual Supplement for Evaluating Charter Applications From Financial Technology Companies, Will Accept Comments Through April 14"
https://www.occ.treas.gov/news-issuances/news-releases/2017/...