News

Fed balks at OCC plan promoting fintech bank charters

January 15, 2019

The Federal Reserve is concerned about efforts by other U.S. regulatory agencies to grant licenses to fintech firms that would allow them to expand money transfer and lending activities without first clearing strict regulatory hurdles, according to a report by Reuters.

The report says that the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency are weighing whether to bring fintechs such as Kabbage Inc., OnDeck Capital Inc., and others into the formal banking systems as part of an effort by the Trump Administration to boost small business growth.

Currently, fintechs contend with a patchwork of state regulations that have hampered their ability to expand nationwide, the report said.