FDIC, Fintech and Utah - Community Banking Brief

FDIC Approves Square For Banking License

PYMNTS

MARCH 19, 2020

The Federal Deposit Insurance Corporation ( FDIC ) gave the green light to an application from the FinTech firm Square to create a de novo industrial bank in Utah, the agency said on Wednesday (March 18). The headquarters will be in Salt Lake City, Utah. Square, Inc. The new bank anticipates opening next year.

FDIC

FDIC Utah San Francisco Capital

Japanese FinTech Rakuten Applying For US Banking Charter

PYMNTS

JULY 26, 2019

A Japanese FinTech company is applying for a banking charter in the United States, according to a report by American Banker. FDIC) and the state of Utah for an industrial loan company (ILC) charter. FDIC) and the state of Utah for an industrial loan company (ILC) charter.

Fintech

Fintech Utah US FDIC

Utah: The fintech frontier

BankInovation

JULY 17, 2020

Fintechs looking to expand beyond their Bay Area or New York City headquarters have welcomed an unlikely visitor in recent years: Utah Gov. The governor is a great salesperson,” said Val Hale, executive director for the Utah Governor’s Office of Economic Development. Gary Herbert. “The

Utah

Utah New York City Fintech California

Rakuten files third application for FDIC insurance

CFPB Monitor

JANUARY 25, 2021

Per the Utah Department of Financial Institutions website, Rakuten Bank America’s application for a Utah ILC charter was received on July 26, 2019 and remains pending. . Rakuten’s first FDIC deposit insurance application was filed in July 2019, and was withdrawn in March 2020. based bank, Rakuten Bank America.

FDIC

FDIC Utah America Financial Technology

California Dept. of Business Oversight launches “true lender” investigation of auto title lender’s partnership with Utah bank

CFPB Monitor

SEPTEMBER 10, 2020

Thereafter, “using its existing lending operations and personnel, LoanMart commenced ‘marketing’ and ‘servicing’ auto title loans purportedly made by CCBank, a small Utah-chartered bank operating out of Provo, Utah.” The FDIC has not yet proposed a similar rule. If adopted, this rule also will almost certainly be challenged.

Utah

Utah California FDIC West Virginia

Why The ICBA Is Fighting Industrial Loan Charters For FinTechs

PYMNTS

OCTOBER 17, 2017

An industrial bank is an FDIC-insured depository institution that is generally subject to the same banking laws and regulations as any other bank charter type, with the important exception of the Bank Holding Act of 1956. All industrial banks are chartered in Utah – and there are only 17 such charters issued, 15 of which are currently active.

Industry

Industry Fintech FDIC Community Bank

Today In Payments: COVID-19 Triggers Job Losses; JPMC First Big Bank To Shutter Branches As Virus Spreads

PYMNTS

MARCH 19, 2020

Also, Square won a banking license for an industrial bank in Utah. FDIC Approves Square for Banking License. The Federal Deposit Insurance Corporation (FDIC) granted Square a banking license to operate a de novo industrial bank in Salt Lake City. Coronavirus Triggers Job Losses, Reduced Hours. Fiserv Acquires Bypass Mobile.

FDIC

FDIC Utah Payments Mobile

Varo Is First FinTech to Receive Full-Service Charter from the OCC

CFPB Monitor

AUGUST 7, 2020

a wholly-owned subsidiary of fintech Varo Money, Inc. The approved application is for a full-service charter, not the OCC’s controversial FinTech charter that is currently the subject of ongoing litigation. team — the first consumer fintech to receive a national bank charter. The water’s fine!”. Varo Bank, N.A.’s

Fintech

Fintech FDIC Utah National

OCC approves national bank charter applications of fintech company

CFPB Monitor

JANUARY 24, 2022

as a full service national bank headquartered in Cottonwood Heights, Utah. The lawsuit, like previous CSBS lawsuits, challenged the OCC’s authority to issue special purpose national bank (SPNB) charters to non-depository fintech companies or to uninsured deposit-taking fintechs.

National

National Fintech Company FDIC

Banks Fighting SoFi’s Banking Charter

PYMNTS

JUNE 20, 2017

The action comes a week after the FDIC announced that digital lender SoFi had applied to the state of Utah for a special banking charter known as an ILC. Ten years ago Walmart to launch in Utah, where many ILCs are based, and was shut down.

Utah

Utah Indiana America Community

Call It Alt-Credit Or POS Lending, ‘Buy Now, Pay Later’ Just Got Bigger

PYMNTS

JULY 14, 2020

Utah-based FuturePay has consistently appeared in PYMNTS’ top 5 alternative credit apps, with its offer of flexible monthly payments for consumers and up-front settlement for merchants. Silicon Valley FinTech Affirm is also a regular in the top 5 this year. The account comes with 1.30

Lending

Lending FDIC Minneapolis Utah

Fed proposal to revise control rules would not create alternative to OCC fintech charter

CFPB Monitor

MAY 16, 2019

As a result, it would not provide an alternative for fintech companies that are considering filing an application with the OCC for a special purpose national bank (SPNB) charter or for an industrial bank charter in a state such as Utah, that permits such charters.

Utah

Utah Fintech New York National

NY federal district court deals blow to OCC fintech charter

CFPB Monitor

MAY 6, 2019

The key passage of the opinion reads: As one instance of the consequential effects of issuing SPNB charters to non-depository fintech companies, the Court notes that such action would entail federal preemption of the state banking regulatory scheme nationwide as it relates to such fintech entities.

Fintech

Fintech New York National Regulation

Square’s ILC bid may open floodgates for fintechs

Payments Source

SEPTEMBER 11, 2017

Square became the third fintech firm in recent months to seek out a bank charter. Others are likely to follow.

Fintech

Fintech Utah FDIC Regulation

California Dept. of Financial Protection and Innovation responds to OppFi’s attempt to block “true lender” challenge to loans made through bank partnership

CFPB Monitor

JULY 14, 2022

OppFi’s complaint alleges that because the Bank and not OppFi is making the Program Loans and the Bank is a state-chartered FDIC-insured bank located in Utah, the Bank is authorized by Section 27(a) of the Federal Deposit Insurance Act to charge interest on its loans, including loans to California residents, at a rate allowed by Utah law regardless (..)

California

California Innovation Utah Texas

OppFi asks court to reject California Department of Financial Protection and Innovation’s “true lender” challenge to loans made through bank partnership

CFPB Monitor

MAY 19, 2022

OppFi’s complaint alleges that because the Bank and not OppFi is making the Program Loans and the Bank is a state-chartered FDIC-insured bank located in Utah, the Bank is authorized by Section 27(a) of the Federal Deposit Insurance Act to charge interest on its loans, including loans to California residents, at a rate allowed by Utah law regardless (..)

California

California Utah United States FDIC

Small business borrowers bring lawsuit alleging lender engaged in “rent-a-charter” scheme to make usurious loans

CFPB Monitor

OCTOBER 10, 2019

According to the complaint , Kabbage entered into the scheme with Celtic Bank, a foreign state-chartered bank in Utah, which has no maximum rate limit for commercial loans. Celtic could not make and keep the loans on its balance sheet because they would create an unacceptable risk under FDIC regulations.

Massachusetts

Massachusetts California New York Utah

California Department Of Financial Protection And Innovation files cross-complaint alleging OppFi is “true lender” on loans made though bank partnership and seeking penalties of “at least $100 million”

CFPB Monitor

APRIL 19, 2022

At the end of last year, we completed a months-long project in updating and expanding a 2017 White Paper addressing bank-model lending—programs involving partnerships between banks (or savings associations) and fintech or other nonbank companies in the interstate delivery of loans.

California

California Innovation Utah United States

California lawmakers urge FDIC to rein in bank partnerships

CFPB Monitor

JUNE 15, 2022

Four Democratic members of the California state legislature recently sent a letter to the Federal Deposit Insurance Corporation (FDIC) urging the agency to take action against FDIC-supervised banks that partner with non-bank lenders to originate high-cost installment loans.

FDIC

FDIC California West Virginia North Carolina

Community Banking Brief

FDIC Approves Square For Banking License

Japanese FinTech Rakuten Applying For US Banking Charter

Trending Sources

Utah: The fintech frontier

Rakuten files third application for FDIC insurance

California Dept. of Business Oversight launches “true lender” investigation of auto title lender’s partnership with Utah bank

Why The ICBA Is Fighting Industrial Loan Charters For FinTechs

Today In Payments: COVID-19 Triggers Job Losses; JPMC First Big Bank To Shutter Branches As Virus Spreads

Varo Is First FinTech to Receive Full-Service Charter from the OCC

OCC approves national bank charter applications of fintech company

Banks Fighting SoFi’s Banking Charter

Call It Alt-Credit Or POS Lending, ‘Buy Now, Pay Later’ Just Got Bigger

Fed proposal to revise control rules would not create alternative to OCC fintech charter

NY federal district court deals blow to OCC fintech charter

Square’s ILC bid may open floodgates for fintechs

California Dept. of Financial Protection and Innovation responds to OppFi’s attempt to block “true lender” challenge to loans made through bank partnership

OppFi asks court to reject California Department of Financial Protection and Innovation’s “true lender” challenge to loans made through bank partnership

Small business borrowers bring lawsuit alleging lender engaged in “rent-a-charter” scheme to make usurious loans

California Department Of Financial Protection And Innovation files cross-complaint alleging OppFi is “true lender” on loans made though bank partnership and seeking penalties of “at least $100 million”

California lawmakers urge FDIC to rein in bank partnerships

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