OCC: Fintech charter has ‘very high bar’; few applicants expected
During an ABA member webinar Monday, senior OCC officials provided more details about the agency’s proposed special purpose national bank charter intended for innovative fintech firms. The officials noted the charter is not a different kind of charter; it would be a national bank charter, with all of the privileges and responsibilities that entails.
The agency will hold applicants to a “very high bar” on par with existing national bank charters, said OCC Acting Chief Innovation Officer Beth Knickerbocker, adding it would limit the interest.
As the OCC has previously noted, fintech charter applicants that do not hold deposits would not be subject to the Community Reinvestment Act and other laws specific to FDIC-insured banks. However, OCC Deputy Chief Counsel Karen Solomon noted “a firm that gets a national bank charter should have obligations related to community investment or financial inclusion.” She said the OCC would design ways firms can meet financial inclusion obligations and the OCC was preparing a written policy for applications.
Solomon also emphasized the agency is very conscious of the need to avoid regulatory gaps with respect to the entities the agency charters. To avoid gaps, as they do with uninsured national trust banks, they would condition approval on compliance with an operating agreement that spells out particular conditions that must be met and would be subject to supervision and enforcement.
ABA has expressed support for the OCC’s approach to innovation, provided any charters granted to fintech firms maintain a level playing field – with high standards for compliance and consumer protection – and do not breach the line separating banking and commerce.
ABA will formally comment on the proposed chartering process next week.
There are still advertising spots available in the upcoming 2017 Oklahoma Bankers Association Directory of Banks. This directory, which is printed each spring, is a must-have in the banking industry each year and can provide top-notch visibility for advertisers!
Click here for more information on how to advertise!
The OBA is looking to fill an open, entry-level position. The position will be for individuals with education and/or experience in marketing and customer service.
Job requirements for this position will include, but are not limited to:
- developing relationships with industry vendors for purposes of recruiting members and selling marketing opportunities;
- developing relationships with members for purposes of obtaining information related to product development;
- coordinating small group meetings between CEO and members as well as members and regulatory entities;
- being the primary contact for members ordering products;
- product development;
- product inventory maintenance.
Please send a resume AND salary requirements to Lea Ann Jackson (firstname.lastname@example.org).
Live programs are back in full force in the education department as all the holidays are behind us! Check out the following:
- Advertising Compliance, Jan. 26, webinar — The webinar will help keep the rules straight and will provide useful checklists and other compliance tools to make your job easier, whether you’re a compliance professional, an auditor, or a marketing department ad designer.
- Compliance Roundups 2017, Jan. 26-Oklahoma City; Jan. 31-Tulsa — The OBA’s annual compliance roundup seminars provide a comprehensive review of new bank compliance laws, amendments to existing laws and regulations, important court cases and common compliance mistakes.
- ACH Rules Update, Jan. 27, webinar — You’ll want to join us to make sure that you are not only compliant with the ACH Rules, but understand the new opportunities are available with the changes.
- Flood Insurance Update, Jan. 30, webinar — Flood Insurance rules have changed continuously over the past few years.
- Escrow Rules: 2017 Review and Update, Feb. 2, webinar — This webinar covers all of the escrow rules, including the long standing and the recently revised requirements of the flood regulations, Regulation X and Regulation Z.
- Onboarding Your New Hire, Feb. 2, webinar — Learn how to excel at new employee onboarding.
- 2017 OBA Commercial Lending School, March 5-10, Oklahoma City — The Commercial Lending School is an intensive, one week functional school designed for bankers with a basic understanding of credit and financial analysis.
One education program, in particular, to be aware of is the OBA Intern Program. The Intern Program will again be active in 2017 and we’re looking for participating banks! For more information on this IMPORTANT program – important not only to aspiring students, but also to participating banks – click here for more information or contact the OBA education department at (405) 424-5252!