By Jeshua Lauka
Last month, Thomas J. Curry, Comptroller of the Currency gave remarks about Special Purpose National Bank Charters for Fintech Companies. You can read Mr. Curry’s remarks here.
Mr. Curry announced that the Comptroller of the Currency (OCC) would move forward with considering applications from financial technology (fintech) companies to become special purpose national banks.
Mr. Curry had this to say, in part:2015-11-26-13-04-02
“Over the past year, no topic in banking and finance has drawn more interest than innovative financial technology, and for good reason. The number of fintech companies in the United States and United Kingdom has ballooned to more than 4,000, and in just five years investment in this sector has grown from $1.8 billion to $24 billion worldwide.
The OCC published a paper discussing the issues and conditions that the agency will consider in granting special purpose national bank charters.”
You can check that paper out here
Support for Special Purpose National Banks from the Fintech Community.
Today I read an article from CrowdFund Insider: Financial Innovation Now supports the OCC’s charter.
Financial Innovation Now is “a public policy coalition comprised of Amazon, Apple, Google, Intuit and PayPal”
Some heavy hitters.
As reported by Crowdfund Insider, Brian Peters, Executive Director of Financial Innovation Now, stated;
“FIN believes that payments and lending regulation needs streamlining for the modern era. We commend the
OCC’s leadership and vision in driving this regulatory discussion. The OCC has rightly concluded that its approach must evolve to ensure that all American consumers and small businesses are empowered with better access to the benefits of financial technology.”
According to Crowdfund Insider “Fintech Charter could benefit innovative financial firms that can provide superior services at a lower cost for both consumers and businesses.”
Why Fintech Intrigues me – Purpose Driven.
I’ve previously talked about why fintech is so intriguing.
a. taking a risk doing something different;
b. disrupting business as usual;
c. for the good of others.
That’s social entrepreneurship at its finest.
Given the hot water that big banks continue to find themselves in, it isn’t surprising that a consumer friendly alternative is attractive.