FOR IMMEDIATE RELEASE
December 5, 2016
BAFT Media Contact: Blair Bernstein
Follow us on Twitter: @BAFT_Global
BAFT Statement on Potential Creation of OCC Fintech Charter
By Tod Burwell, BAFT president and CEO
"The OCC's consideration of a national special purpose charter for fintechs engaged in certain activities like deposit taking, payments, and lending is a welcome sign that the United States plans to keep pace with other countries in fostering the fintech sector. The offering of such a charter in the United States would be similar in spirit to the passport-like license available in the European Union, which permits payment and e-money companies granted a license in one country to do business in any other country within the Union.
“The current state-by-state licensing process for fintech companies doing business nationally is burdensome, expensive, and inconsistent with the borderless nature of financial technology. We believe a national special purpose charter is an elegant way to ensure that important prudential and consumer protection standards are consistently maintained while allowing new entrants to bring valuable, innovative products to market.
“BAFT looks forward to continuing the dialogue with the OCC through the submission of more comprehensive comments on its whitepaper in January."
BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance. The association website is www.baft.org.