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Transactions Association, said fintech has made
financial services accessible through mobile and online
apps and a range of free and low-cost digital services.
In a Jan. 17, 2017, letter to Comptroller Curry, Talbott
wrote, "It's clear that online small business lending is
reaching a broad market, and that providing quicker
access to capital allows small businesses to invest in
their employees, purchase more inventory, expand
their services, and ultimately grow their businesses."

NYPAY, a professional networking group, hosted a
panel discussion Feb. 21, 2017, to further explore the
issue. David True, payments industry consultant and
NYPAY President, said the discussion was intended
to expand on the OCC's proposal, which continues
to evolve in response to the new administration and
proposed changes to the regulatory environment.

The panel, moderated by Tom Scanlon, Counsel at
Davis, Wright, Tremaine LLP and former Senior
Counsel for the U.S. Department of the Treasury,
included Andrew Lorentz, Partner at Davis, Wright,
Tremaine; Kathy Tomasofsky, Director at Money
Services Business Administration; and Stuart Sopp,
Chief Executive Officer of Current.
Thorough vetting needed
Panelists noted the OCC was established in 1863
as part of the national banking system under the
National Currency Act. It brought cohesiveness to
what had been a fragmented approach to banking and
ultimately helped the Union finance the Civil War.
Taking steps to steady the financial system through
good times and bad and weathering the challenges
each era has brought, the OCC launched a framework
for responsible innovation in 2016.

While praising the OCC for staying attuned to the
evolving payments landscape, panelists noted its white
paper recommended bringing fintech under uniform
supervision, without providing an overarching
definition for fintech. The white paper stated firms
applying for a special charter would need one of three
qualifying criteria: it would have to receive deposits,
pay by check or debit cards, or lend money.

"Under the current administration, there is a lot of open
agenda to address fintech issues but little specificity,"
Tomasofsky said. "The House and Senate will be
approving and consolidating bills and rolling back
regulations in conjunction with the Congressional
Review Act and Financial Choice Act."

Pointing to the numerous open questions about
fintech charters, a changing regulatory environment
and uncertainties about the incoming Comptroller,
panelists agreed the OCC's fintech application process
may not be the best vehicle for a startup that wants to
get to market quickly.

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