There is uncertainty surrounding the OCC fintech charter because the Fed is rumored to not fully support the idea; that...
A group of 37 community groups sent a joint letter to the FDIC opposing the ILC application for the fintech...
President Trump’s pick to head the FDIC, Jelena McWilliams, has spoken favorably about ILC charters in the past; ILC charters exist in a handful of states, most notably Utah who has seen a spike in inquires about applications; charters can allow fintech companies to bypass state by state licensing; ILC charters are an controversial way for fintech companies to act like banks and with the national charter proposed by the OCC in limbo more companies might look to take this route. Source.
Japanese e-commerce giant Rakuten first applied for an ILC charter last year before withdrawing the filing and refiling this May;...
In this week’s PeerIQ Industry Update they cover the growing risk of a recession due to the coronavirus, though estimates...
Banks call on Congress to freeze new ILC approvals How the pandemic is propelling Zelle With Robinhood’s UK launch delayed,...
When Square initially filed for an ILC charter there were many in fintech who though the payments firm was doomed...
SoFi has faced challenges of opposition to its industrial loan charter from numerous parties for various reasons; now California Representative Maxine Waters, a Democrat on the House Financial Services Committee, has written a letter to the FDIC calling for a public hearing to more broadly discuss the online lenders application and its market implications; fintech regulation is an ongoing topic for debate and Waters says, "Granting SoFi's application would set a precedent that a wide variety of other fintech companies may choose to follow even though concerns related to financial inclusion, consumer benefits, supervision, and regulation of such entities are still unresolved."; the industrial loan charter would give SoFi a number of advantages including the allowance for FDIC insured deposits with no supervisory reporting requirements at the holding company level; Waters also commented on the development of the OCC's special purpose national charter for fintech companies which would grant internet lenders nationwide business approval in a single charter, stating that the framework has not been fully developed for implementation; the industrial loan company charter is currently limited to business in the states of California, Colorado, Minnesota, Indiana, Hawaii, Nevada and Utah. Source