Community Groups Submit Letter to OCC on Potential FinTech Charter

Consumer Finance Digital Commerce OCC CRA Miscellany Fintech

On October 25, the National Community Reinvestment Coalition and community groups across the country sent a letter to the OCC explaining that they strongly oppose the consideration of a limited-purpose fintech charter by the bank regulator. The groups explained that they would consider supporting the limited-purpose chartering of a fintech firm "only if the OCC does not preempt strong state law and establishes vigorous supervision and regulation for the newly chartered institutions." Additionally, the groups want chartered fintech firms to be subject to "rigorous Community Reinvestment Act (CRA)-like obligations" and "stringent" safety and soundness reviews. The letter argues that “new charter and receivership authority for uninsured institutions, primarily financial technology companies (fintechs), has the potential to benefit consumers and communities,” but only if accompanied by CRA-like obligations, and supervision and examination to ensure compliance with both fair lending and consumer protection laws.