More Sense than Money: National Charter Option for FinTech Firms is the Right Choice

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Volume 18, Online Edition (Apr 2017)

The financial technology field is a rapidly growing sector that threatens to disrupt established financial institutions and their accompanying regulatory structure. New types of financial services and products do not fit neatly into the current regulatory landscape, which has hampered growth and competition with traditional financial institutions. This article advances the idea that the Office of the Comptroller of the Currency’s recently proposed special purpose national bank charter provides an appropriate solution that protects consumers, encourages innovation and competition, and moves the industry forward. First, this article briefly describes the financial technology sector and the scheme of national bank regulation. Second, the proposed charter is put in context, examining the state and national regulatory schemes currently monitoring the financial technology industry. Lastly, this article evaluates the potential impact of a special purpose national bank charter on consumers, regulatory bodies, and financial technology companies themselves.

J. Parker Murphy, More Sense than Money: National Charter Option for FinTech Firms is the Right Choice, 18 N.C.J.L. & Tech. On. 359 (2017), http://ncjolt.org/wp-content/uploads/2017/04/Murphy_Final-copy.pdf.

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