OCC fintech charter receives blow from NY court
A New York federal judge ruled on Monday that the Office of the Comptroller of the Currency (OCC) lacks legal power to grant a bank charter to a fintech company, planting the OCC’s charter program in murkier grounds. One significant implication of the ruling is that the bank partnership model will continue to thrive as the best originating option for fintechs, market participants told GlobalCapital.
The fintech charter program was first proposed by the OCC in December 2016, aiming to bring standardization of regulation across the country.
The proposed special charter would allow marketplace lenders to operate under a uniform federal law without going through the burden of getting licensed in each individual state.However, ...