United States: US Office Of The Comptroller Of The Currency Begins Accepting National Bank Charters From Fintech Companies

On July 31, 2018, the OCC announced that it would begin accepting national bank charter applications from non-depository FinTech companies that seek to engage in the business of banking. In connection with the announcement, the OCC released a policy statement that outlines the OCC's chartering authority with respect to non-depository FinTech companies, the OCC's stated support for reasonable innovation and the chartering standards and supervisory expectations applicable to such institutions. Consistent with standard national bank applications, the OCC noted that it will consider whether the applicant has a reasonable chance of success, will be operated in a safe and sound manner, will provide fair access to financial services, will treat customers fairly and will comply with applicable laws and regulations as well as whether the institution can reasonably be expected to maintain profitability and whether the approval of the charter will foster healthy competition. FinTech companies that receive the charter would be subject to the same safety and soundness and fairness standards that are applicable to all federally chartered banks, and would be supervised in a manner consistent with similarly situated national banks with respect to capital, liquidity and risk management. Chartered FinTech companies would also be required to develop contingency plans to account for significant financial stress, and plans outlining the institution's resolution strategy. The OCC also released a supplement to its Comptroller's Licensing Manual that outlines the application process for FinTech companies and the considerations the OCC will use in evaluating these applications and the supervision of these institutions once a charter has been granted.

The full text of the OCC's policy statement is available at: https://www.occ.treas.gov/publications/publications-by-type/other-publications-reports/pub-other-occ-policy-statement-fintech.pdf.

The full text of the OCC Licensing Manual supplement regarding FinTech companies is available at: https://www.occ.treas.gov/publications/publications-by-type/licensing-manuals/file-pub-lm-considering-charter-applications-fintech.pdf.

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