OCC to Accept National Bank Charter Applications from Fintech Firms

In announcing the decision, the policy statement and Comptroller's Licensing Manual Supplement stress:

• Every application will be evaluated on its unique facts and circumstances.
• Fintech companies that apply and qualify for, and receive, special purpose national bank charters will be supervised like similarly situated national banks, to include capital, liquidity, and financial inclusion commitments as appropriate. 
• The expectations for promoting financial inclusion will depend on the company’s business model and the types of planned products, services, and activities.
• New fintech companies that become special purpose national banks will be subject to heightened supervision initially, similar to other de novo banks.
• OCC has the authority, expertise, processes, procedures, and resources necessary to supervise fintech companies that become national banks and to unwind a fintech company that becomes a national bank in the event that it fails.

OCC has statutory authority, regulations, and policies that govern its review and decision making with respect to chartering national banks, including special purpose national banks. That authority includes companies that engage in one of the core banking functions (paying checks, lending money, or taking deposits) and is described at 12 CFR 5.20(e)(1). That authority does not require the bank to take deposits within the meaning of the Federal Deposit Insurance Act and, therefore, would not require insurance from FDIC. Qualifying fintech companies also may apply for federal charters under the authority of OCC to charter full-service national banks and other special purpose banks, such as trust banks, banker’s banks, and credit card banks.

Related Links

• Press Release
• OCC Policy Statement (PDF)
• Supplement to Comptroller’s Licensing Manual (PDF)

Keywords: Americas, US, Banking, Fintech, Regtech, National Bank Charter, OCC