Companies like Lending Club, an online loan marketplace, and Square, which allows small businesses to accept electronic payments, have been changing the ways Americans expect to receive financial services. These companies have also operated outside of some of the regulatory constraints on traditional banks.
The licenses from the Office of the Comptroller of the Currency, which oversees many national banks, will be available to companies like Square and Lending Club that accept deposits, facilitate electronic payments or lend money.
Many technology firms have been pushing for some sort of new regulatory system that would allow them to cut through the patchwork of state and federal laws that govern financial activities and make it hard to expand nationally.
The introduction of the licenses, called special purpose national bank charters, underscores how quickly so-called fintech firms are growing and how significant they are considered to the future of the financial industry.
“Providing a national charter to those responsible innovators who seek one and meet our high standards can help promote economic growth across the country and recognizes that technology-based products and services are the future of banking and the economy,” Mr. Curry said in a speech at Georgetown University.
In my previous blog, I mentioned that the U.S. government should clarify the law and regulations on fintech industry as soon as possible. This license will help innovative fintech companies to grow with certainty in government regulations and support. Eventually, the growth in the fintch sector will improve the overall economy of the country.