OCC Confirms No Fintech Bank Charter Applications Filed by February 2019

On February 26, 2019, the Office of the Comptroller of the Currency filed a brief in Conference of State Bank Supervisors v. OCC confirming that no special purpose national bank charter application had been received from any fintech company. The OCC's July 2018 policy statement had opened the door for fintechs engaged in core banking functions—such as payments or lending, but not deposit-taking—to apply for national bank charters.

However, ongoing state lawsuits from the CSBS alleging the OCC lacked statutory authority under the National Bank Act, along with stringent application requirements including three-year business plans and adequate capital, deterred applicants. The OCC argued that the legal challenges were premature since no application had been filed, evaluated, or granted, making alleged injuries speculative. The charter program's requirements effectively limited eligibility to mature fintechs rather than startups, reinforcing the importance of bank-fintech partnerships and BaaS models as alternative paths to market.

This regulatory stalemate meant fintechs continued to rely on partner bank relationships and BaaS infrastructure rather than obtaining their own charters, a dynamic that would shape the embedded finance ecosystem for years to come.