OLA Statement on Treasury Recommendations for Nonbank Financials, Fintech and Innovation and OCC Announcement on Acceptance of National Bank Charter for Fintech
WASHINGTON, DC – July 31, 2018 – The following statement can be attributed to the Online Lenders Alliance:
“We applaud the work of the Treasury Department and the Office of the Comptroller of the Currency in undertaking a deep, thoughtful review of the fintech space and the essential role it plays in driving innovation and ensuring all Americans have access to credit.
“For prime consumers, rapid innovation has delivered new options that meet evolving needs and consumer expectations. Today’s announcements take significant steps toward ensuring those same benefits are available to non-prime consumers, unlocking the power of technology to help them manage their finances and access products that best fit their needs.
“On behalf of our members, we are pleased the OCC announced it will begin accepting national bank charter applications for fintech companies. We believe such a regime would offer the right level of supervision and regulatory consistency to ensure non-prime customers are served appropriately and fairly. This works well in the state and national banking systems that operate concurrently today, and we think it is a useful model for fintech based non-banks going forward.
“Finally, the Treasury report underscores the need for comprehensive government research on the true cost of providing credit so that we can have an informed, fact-based view of how to appropriately serve the 109 million non-prime consumers who benefit from fintech innovation. For example, there is no legitimate research that examines how a 36 percent APR ceiling, that has gained currency, among stakeholders and officials, would affect otherwise eligible borrowers and lenders who serve the non-prime market. The Administration clearly recognizes the importance of serving this marketplace, and research would help ground the policy and discussions in customer-centric realities.
“We stand ready to work with the Treasury Department, OCC, other regulators, and all stakeholders as our industry continues its work to provide safe, reliable and convenient access to credit for those who need it.”
The Online Lenders Alliance (OLA) is the first trade association in fintech and the center for lending, technology and innovation, representing the growing industry of companies offering loans online. OLA’s membership includes entrepreneurs, publicly-traded companies, fraud prevention experts, privacy protectors, lenders, alternative credit bureaus, and software developers. OLA members abide by a rigorous set of Best Practices and Code of Conduct to ensure their customers are fully informed and fairly treated.