The US Office of the Comptroller of the Currency (OCC) would move forward with considering applications from financial technology (fintech) companies to become special purpose national banks.
Comptroller of the Currency Thomas J. Curry made this announcement at the Georgetown University Law Center.
“The OCC will move forward with chartering financial technology companies that offer bank products and services and meet our high standards and chartering requirements”, he said. “We have published a paper today discussing several important issues associated with the approval of a national bank charter, and we are seeking stakeholder comment to help inform our path forward”.
The paper titled “Exploring Special Purpose National Bank Charters for Fintech Companies”, describes the OCC’s legal authority to grant a special purpose charter, and articulates what the OCC considers to be necessary conditions if the OCC is to exercise that authority. The paper is available on the agency’s website at occ.gov and comments may be submitted through January 15, 2017.
Curry cited several reasons for considering special purpose national charters for fintech companies.
“First and foremost, we believe doing so is in the public interest,” Curry said. “It is clear that fintech companies hold great potential to expand financial inclusion, empower consumers, and help families and businesses take more control of their financial matters.”
He also explained that considering fintech charter applications provides businesses a choice without creating a requirement to seek a charter. Companies that seek a charter are evaluated to ensure they have a reasonable chance of success, appropriate risk management, effective consumer protection, and strong capital and liquidity.
“We recognize that our decision will affect the federal banking system for many years to come, and I believe that effect will be a positive one”, Curry said.
