Marketplace Lenders to Benefit from New OCC Ruling

Last week, the U.S. Office of the Comptroller of the Currency (“OCC”), announced that they will grant specialized national charters to fintech lenders.  These specialized licenses could allow on-line lenders to avoid the morass of individual state regulations in the U.S.  Having to cope with individual state banking rules and regulators, has been a major obstacle to the growth of the marketplace lending industry in the United States.

Of course, no step forward comes without some cost.  One area fintechs will have to balance when considering a state charter verses a federal charter strategy will be subjecting themselves to U.S. federal rules and regulations under a national charter.  Several U.S banks are on the record saying that on-line lenders have an unfair advantage over banks that are currently subject to those federal standards.

It will be interesting to see how this plays out.  At any rate, simply providing marketplace platforms with another licensing option should turn out to be a net positive for the development of this industry.