The Office of the Comptroller of the Currency (OCC) recently announced that it will consider FinTech Company applications for a national bank. This decision is very progressive of the OCC, but after considering the cost effective nature of online banking, and its ability to reach consumers at any point in time, the OCC decided this was the best move for customers. If FinTech companies became nationally chartered banks they would have the ability to provide lending, deposit, or payment systems services. State chartered Fintech Banks are also a possibility but would have to be approved by individual states. New regulation will slow the process of these banks becoming established, however, we can expect these institutions in the coming years.
If these banks are established they will create strong competition for existing financial institutions. The author says if these banks are established credit unions could become “uberized”. Credit unions are limited by the amount of customers they can serve, their strict corporate structure, and their restricted lending authority. I would recommend credit unions establish alliances with the Fintech companies before they become strong competitors. This way they would be able to profit off Fintech’s imminent growth.
http://www.natlawreview.com/article/fintech-banks-new-uber