On December 02, 2016, Comptroller of the Currency Thomas J. Curry announced that the OCC “will move forward with chartering financial technology companies that offer bank products and services and meet our high standards and chartering requirements.”  This is the third step taken this year by the OCC in its effort to understand and embrace the financial technology impact on the banking industry.

Mr. Curry stated that no new statute or regulation will be needed for the OCC to issue any new special purpose bank charters as it has the authority to do so under existing law.  In issuing these new charters, the OCC will be concerned about “consumer protection and financial inclusion, and regulatory fairness and supervisory rigor.” 

Mr. Curry noted that “state law applies to special purpose national bank in the same way and to the same extend as traditional national bank”, such as laws relating to anti-discrimination, fair lending, debt collection and foreclosure.  He also noted that state laws that are aimed at unfair or deceptive treatment of customers also apply to national banks.

There is no explicit model that will be used by the OCC in its review of applications.  Application review will be determined by the business plan and financial condition of the applicant, among other criteria.  The OCC encourages potential applicants to meet with its staff from its newly created Office of Innovation for further direction on potential applications.

Additionally, the OCC has asked for feedback on 13 questions relating to today’s announcement and comments are due by January 15, 2017.