Fintechs Cautious Over US Banking Regulator’s Special Federal Charters Offer
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Online lenders have reportedly sounded a cautious note on an offer from the Office of the Comptroller of the Currency last month which would accept applications for banking licenses from such fintechs.
The offer could allow the companies to operate under one banking license instead of a patchwork of state-specific regulations. While fintech executives applauded the decision, a lot are hesitating to rush in due to concerns over legal challenges and requirements that are likely to be increasingly onerous.
No company has applied for the charter yet as most are expecting a legal battle to ensue between the federal government and states.
Source: Reuters