📰 Financial Technology Start-Ups to Get a License to Bank (in the USA) - The New York Times


(Alex Sherwood) #1

This article doesn’t actually mention Monzo but I’m filing it as Monzo related anyway, as this has big implications if Monzo wants to expand into the US & Tom retweeted the article.

Highlights

Many technology firms have been pushing for some sort of new regulatory system that would allow them to cut through the patchwork of state and federal laws that govern financial activities and make it hard to expand nationally.

“What excites me most about the changes occurring in financial services is the great potential to expand financial inclusion, reach unbanked and underserved populations, make products and services safer and more efficient, and accelerate their delivery,” Mr. Curry said.

Companies applying for the new charter would need to demonstrate their commitment to “financial inclusion,”

For their part, many fintech start-ups have complained that under existing rules they have to partner with traditional banks, which often do not want to work with them, to provide basic financial services.

White paper with more details

Background

Tom’s been quoted as saying that he wants Monzo to have a billion customers so the US would be a likely target market & we know that Monzo are testing US dollar cards, at the moment based on this article.


Rethinking Banking - Marketplaces and App-Only Banks - London FinTech Podcast :radio:
American version of Monzo
(Alex Sherwood) #2

Here’s the Wall Street Journal’s take on the same story

Today, virtually all technology companies join with banks in some fashion to access the payment system or make loans.

“A surprisingly large number of players are very closely watching,”

Mr. Curry said that between the U.S. and U.K. alone, there were now more than 4,000 such companies. Investment in the sector has increased from $1.8 billion to $24 billion world-wide in the past five years, he said.

Some fintech firms have complained that other countries, notably the U.K., have done more to update their regulatory systems to allow for financial experiments that could improve consumers’ experience.

The proposal is open to public comment through Jan. 15 and is expected to generate significant reaction, following monthslong deliberations inside the OCC about whether to become the first U.S. federal regulator to allow nonbank fintech firms to possess some of the same powers that full-fledged banks do.


The Man Bringing Down The Banks - Mr Porter