OCC Outlines Evaluation Framework for Fintech Bank Charter Applications

In February 2018, the OCC detailed its approach to evaluating fintech companies seeking special purpose national bank charters, laying out the criteria and processes that would govern such applications. The framework addressed how the agency would assess business plans, capital requirements, risk management, and consumer protection measures for non-traditional banking entities. This was part of a broader regulatory push to accommodate the growing role of technology companies in financial services.

The OCC's openness to fintech charter applications was seen as a significant signal to the industry, potentially enabling fintech firms to operate under a national banking framework rather than navigating a patchwork of state regulations. The Basel Committee on Banking Supervision also published related guidance on fintech implications for banking supervision during this period. No specific fintech companies received formal charter approvals at this time; the announcement focused on establishing the evaluation framework for future applicants.

The move drew both support from fintech advocates and opposition from state regulators concerned about federal preemption.