A week after acting Comptroller of the Currency Keith Noreika announced his support for the fintech charter, his agency argued in a court filing that its fate was too uncertain to be challenged in court.
Social Finance’s application for an industrial loan charter has not only drawn opposition from a coalition of incumbent banks and community activists, it also serves as a microcosm of several perennial debates in financial services policy.
Varo Money, an app designed for people who want to exclusively bank on their cell phones, announced Tuesday that it has filed formal applications for a national bank charter, adding another credit union competitor to the banking landscape.
Acting Comptroller of the Currency Keith Noreika made it clear that he supports the creation of a federal charter for fintech firms while also arguing that abusive lending happens at state-chartered firms, not national banks.
Fintech firms, banks, state regulators and consumer protection groups all expressed significant reservations about the Office of the Comptroller of the Currency's latest plan on its fintech charter initiative.