American Banker, January 13, 2021, BankThink Fintechs that get bank charters should be subject to CRA. Period.
While consumer groups and the banking industry sometimes disagree, there’s one thing we do agree on: the need to stop the Office of the Comptroller of the Currency’s last-minute attempt allowing fintechs to become national banks without adhering to the full consumer protection and community reinvestment laws.
In the latest move opening the banking door to fintechs, acting Comptroller of the Currency Brian Brooks has provided unbundled financial services to fintechs on a national scale by selecting the regulatory requirements that apply to them. That’s not the way the law works for traditional banking charters, and that’s not what generations of consumers have come to expect in their banking relationships.
But last year, Brooks made clear in public comments that the OCC has the authority to grant a bank charter to a company that does not take deposits. Our organizations disagree.