Tag Archives: National bank charter
The Office of the Comptroller of the Currency recently gave conditional approval to a national bank charter applicant that plans to offer traditional bank products and services exclusively through mobile, online, and phone-based channels. The bank, Varo Bank, N.A., will be headquartered in Salt Lake City, Utah, and will not have any branches or deposit-taking ATMs. The bank intends to have a nationwide footprint, however, based on its digital delivery system.
Financial technology companies will soon have a new business model to consider – one that will allow them to avoid the various licensing and other regulatory requirements in the states where they do business. The Office of Comptroller of the Currency (“OCC”), the federal banking agency responsible for the supervision of national banks, announced on December 2nd that it will start granting limited or special purpose national bank charters to fintech companies. There are, however, strings attached. A fintech company electing such a charter will be subject to many of the same rigorous safety and soundness standards that currently apply …
[ CONTINUE READING]