Financial technology (fintech) companies in the US can now apply for special purpose national bank status usually reserved for banks that process cheques, issue loans and/or take deposits. The new rules will allow financial institutions to open accounts with a single entity and offer services such as checking accounts, savings account or credit card processing without having to establish separate branches or offices.
Financial technology (fintech) companies in the US can now apply for special purpose national bank status usually reserved for banks that process cheques, issue loans and/or take deposits. According to Thomas Curry, Comptroller at the Georgetown University Law Center, fintech start-ups “hold great potential to expand financial inclusion” as well as promote economic growth on a national level.