The Morning Consult Writes:
“The Office of the Comptroller of the Currency’s plan to offer national charters to financial technology firms drew a range of reactions from the traditional financial industry, running from lukewarm support to staunch opposition.”
“In their public comments, banks said they don’t want chartered fintech firms to get special treatment while operating in the banking sphere. Rob Morgan, the American Bankers Association vice president of emerging technologies, wrote that any ‘missteps by a fintech company operating through a national bank charter will inevitably reflect on all banks.'”
“Smaller banks were more critical in their comments, with the Independent Community Bankers of America saying it could not support the charter plan until the agency clarifies several questions. The OCC’s white paper “raises more questions than it answers,” wrote Christopher Cole, ICBA’s executive vice president and senior regulatory counsel, and James Kendrick, first vice president of accounting and capital policy.”
“State regulators and civil rights groups were even more critical. The Conference of State Bank Supervisors wrote that the new charter would skirt state regulations and allow the government to cull winners and losers in the private sector. A letter from the Center for Responsible Lending that included the NAACP and the Leadership Conference on Civil and Human Rights said the charter plan would subvert state regulations and consumer protection laws.
Read the article here.