Deep Dive Episode 37 – Fintech Licensing and the OCC Charter
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Innovations in financial technology have enabled financial services to be provided in new ways and by new competitors, but under old rules. One area of tension is the role of federalism in a world where, thanks to the internet, firms can provide services nationwide at their inception. The balance of authority between the states, who traditionally had primary authority over non-bank lenders and money transmitters and the federal government has been called into question, with some advocating for greater federalization in the interest of efficiency and equity, and others resisting citing concerns about state sovereignty and consumer protection. Federal regulators have also taken note, with the Treasury calling for reforms to streamline fintech regulation and OCC announcing it would offer some non-depository fintech firms the opportunity to get a federal bank charter, which led the states to sue. Come hear a discussion on the state of fintech and federalism and the proper path for the future.