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Tag Archives: FinTech

Financing Fintech: ILC Charters

Posted in Regulatory Developments

An ILC, or industrial loan company, is a form of bank that can be chartered in Utah, Nevada, and a few other states. ILCs are insured by the FDIC and have most traditional banking powers, but they cannot hold corporate checking accounts. Significantly, an ILC is not a bank under the Bank Holding Company Act,… Read More

OCC Acting Comptroller Woos Fintech Companies with Remarks on Online Lending

Posted in Regulatory Developments

On September 25, 2017, Acting Comptroller of the Currency Keith Noreika discussed online lending and innovation in his keynote remarks prepared for delivery to the Online Lending Policy Summit in Washington, D.C. Consistent with his previous remarks, the Acting Comptroller expressed his support for a regulatory environment that fosters responsible innovation and touted the growth… Read More

A First Time for Everything—CFPB Issues Its First No-Action Letter

Posted in CFPB, Disparate Impact, Fair Lending

The CFPB recently announced the issuance of its first no-action letter (“NAL”) to Upstart Network, Inc., an online lending platform that uses alternative data to model consumer credit decisioning and pricing. The letter signifies that the CFPB has no present intention to recommend an enforcement or supervisory action against Upstart for violation of the Equal… Read More

Faster Payments Task Force Sets Goals and Recommendations for Faster Payments by 2020

Posted in Electronic Payments, Mobile Payments

On July 21, 2017 the Federal Reserve’s Faster Payments Task Force released the Faster Payments Task Force Final Report Part Two. The Final Report is a follow-up to Part One of the Faster Payments Task Force Final Report, which was published in January 2017 and provided an overview of the Task Force’s objectives and a… Read More

Acting Comptroller Endorses Fintech Charters

Posted in Regulatory Developments

In July 19, 2017 remarks prepared for delivery to the Exchequer Club in Washington, D.C., Acting Comptroller of the Currency Keith Noreika expressed his support for the Office of the Comptroller of the Currency’s efforts to establish national bank charters for financial technology companies. In endorsing the OCC’s so-called fintech charter, he noted that the… Read More

OCC Releases Semiannual Risk Perspective: Fintech is Risky?

Posted in Regulatory Developments

On July 7, 2017, the Office of the Comptroller of the Currency released its Semiannual Risk Perspective report identifying the risks faced by national banks and federal savings associations in the 12-month period ending December 31, 2016. The Report, which is intended to highlight key risk issues facing the federal banking system, noted that strategic, credit, operational… Read More

OCC Guidance Suggests Flexibility for Third-Party Risk Management

Posted in Regulatory Developments

On June 7, 2017, the Office of the Comptroller of the Currency issued frequently asked questions that supplement the OCC’s 2013 guidance entitled “Third-Party Relationships: Risk Management Guidance.” The 2013 Bulletin sets forth the OCC’s expectation for banks’ due diligence and ongoing monitoring of third-party service providers, including enhanced diligence and monitoring for third parties… Read More

CFPB Evaluates Use of Alternative Data and Modeling Techniques in the Consumer Lending Credit Process

Posted in CFPB, Fair Lending, Privacy

On February 16, 2017, the CFPB issued a Request for Information regarding use of alternative data and modeling techniques in the consumer lending “credit process.” The CFPB defines the “credit process” broadly as all processes and decisions made by a creditor during the full life cycle of the credit product, including marketing, pre-screening, fraud prevention,… Read More

Parting Shot: Outgoing Administration Releases FinTech White Paper

Posted in Regulatory Developments

On January 13, 2017, a week before the change in Administration, the Obama White House issued a white paper entitled “A Framework for FinTech” (“White Paper”). The White Paper highlights various FinTech initiatives that were taken by the previous Administration and lays out policy objectives and principles that the Obama White House thought should be… Read More

Financial Services Report – Winter 2016

Posted in Arbitration, Auto Lending, CFPB, Credit Cards, Disparate Impact, Electronic Payments, Enforcement Actions, Fair Lending, Foreclosure, Military Issues, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, Regulatory Developments, State Regulators, UDAAP

Hope you survived all of those awkward Thanksgiving holiday conversations—amazing how divided people are on whether the court got it right in the PHH case, isn’t it? So on we go into the holiday season, while visions of Dodd-Frank repeal dance in our heads. No long winter’s nap for the CFPB, not with the inauguration… Read More

EVENT: FinTech Companies and the OCC Special Purpose National Bank Charter

Posted in Events, Regulatory Developments

Thursday, December 8, 2016 11:00 a.m. – 12:00 p.m. PST 2:00 p.m. – 3:00 p.m. EST The Office of the Comptroller of the Currency (OCC) announced in a White Paper that it would begin considering applications from FinTech companies to become “special purpose national banks.” The White Paper includes information about the OCC’s supervisory expectations… Read More

OCC Announces Special Purpose National Bank Charter for FinTech Companies

Posted in Regulatory Developments

On December 2, 2016, Comptroller of the Currency Thomas Curry confirmed that the agency will begin considering applications from FinTech companies to become special purpose national banks, saying that the OCC will charter “financial technology companies that offer bank products and services and meet our high standards and chartering requirements.” The OCC simultaneously released a… Read More

FTC Announces FinTech Forum on Crowdfunding, Peer-to-Peer Payments

Posted in Events, Mobile Payments, UDAAP

On August 3, 2016, the Federal Trade Commission (FTC) released two items in connection with its series of events on the implications of FinTech for consumers. First, the FTC announced it will be hosting the next event in the FinTech Forum series on October 26, 2016. The event will address crowdfunding and peer-to-peer payments. Second,… Read More