Strategic alliances between banks and fintech companies to offer online loans have been the subject of legal negotiations and court cases over the past few years. Some of these bank alliances have been challenged in the courts by using the “true lender doctrine”. The doctrine states that at the time a loan is originated, the lender […]
Continue reading →A multi-state licensing agreement (“Compact”), that standardizes certain elements of the licensing process for money services businesses (“MSB”), has been implemented. MSB include money transmitters, payment service providers, and currency exchangers. The agreement provides that if one state in the Compact has reviewed certain license requirements such as IT processes, cybersecurity, business plan, background check and compliance […]
Continue reading →As an update, the Office of the Comptroller of Currency (“OCC”) had proposed a special purpose charter process (“fintech Charter”) for “fintech” or nonbank lenders in 2016. While fintech lenders were evaluating this licensing opportunity, lawsuits were filed, including one filed by the New York Department of Financial Services (“NYDFS”). The complaint alleged, certain […]
Continue reading →The Conference of State Bank Supervisors (“CSBS”), which represents state chartered banks nationwide, filed suit against the Office of the Comptroller of Currency (“OCC”) in the US district court of the District of Columbia in April, 2017, regarding the OCC’s issuance of a new non-bank “fintech charter”. The complaint alleges that the OCC is over-reaching […]
Continue reading →Does the Consumer Financial Protection Bureau (“CFPB”) have jurisdiction over “commercial credit”? Rep. Emanuel Cleaver II, raised certain concerns in a recent letter to the CFPB (the “Cleaver Letter”) , which can help us answer this question. As we know, fintech lending is based upon the use of algorithms to determine whether to provide commercial […]
Continue reading →On March 15, 2017, the Office of the Comptroller of the Currency (“OCC”), the regulator and chartering authority for national banks and federal savings associations, issued a draft supplement to the Comptroller’s Licensing Manual entitled Evaluating Charter Applications from Financial Technology Companies (“Manual”). The Manual describes the process through which financial technology (“fintech”) companies may […]
Continue reading →There is some confusion in the marketplace with respect to new loan products and services in the banking industry. My definition of “FINTECH” is broad and encompasses computer programs, applications and other technology used to provide banking and financial services. Perhaps you have noticed that many retail bank services have been streamlined through on-line payment, […]
Continue reading →We consult with marketplace lenders and community banks and other lenders to create a strategic partnership to meet both parties’ business goals. It may be more cost effective to partner with a FinTech provider or marketplace lender than to create a new platform. We offer a value-based consulting product to analyze goals, prepare a strategic […]
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