• OCC Releases Materials for FinTech Charter
  • April 18, 2017 | Author: Christopher R. Rahl
  • Law Firm: Gordon Feinblatt LLC - Baltimore Office
  • We reported in our March 2017 Maryland Legal Alert about plans by the Office of the Comptroller of the Currency (OCC) to issue special purpose national bank charters (Special Purpose Charters) through a supplement to its Licensing Manual. On March 15, 2017, the OCC released its draft supplement: Evaluating Charter Applications From Financial Technology Companies. The supplement explains that the OCC expects applicants for a Special Purpose Charter to be more bank than FinTech firms. Applicants will need to have a robust compliance management system and will need to include adequate evidence that they have: organizers and management with appropriate skills/experience; adequate capital to support the projected volume and type of business/risk profile; and a business plan that articulates a clear path/timeline to profitability. The supplement also makes clear that the OCC will be looking for applicants to demonstrate a commitment to financial inclusion and include in a Special Purpose Charter application a "financial inclusion plan" to explain how the applicant will provide fair access to financial services and promote fair treatment of customers. FinTech firms that wish to pursue a Special Purpose Charter should be mindful that the OCC will be looking for applicants that want to become a bank that uses technology rather than a technology company that is seeking banking authority.