The US Treasury Department (Treasury) has issued its fourth report1 in a series on the Administration’s core principles to regulate the US financial system. It signals a new regulatory approach toward nonbank financial institutions, financial technology (“FinTechs”), and financial innovation. Coupled with the Office of the Comptroller of the Currency’s (“OCC”) same day announcement2 that it is accepting FinTech special purpose charter applications, FinTechs considering entering the banking environment, through a bank charter themselves or indirectly through partnerships, can take a note of encouragement. That said, there were no big surprises relative to past statements about underlying regulations and bank charter applications at this time.
Deloitte recently held its 4th annual Cross-Industry Compliance Leadership Summit at the Deloitte University campus in Westlake, TX. The Summit convened over two dozen chief compliance officers (CCOs) and senior compliance leaders representing a range of industries, including health care, financial services, manufacturing, and retail.
The first night of the summit showcased emerging technologies during an interactive networking reception, and allowed CCOs to see firsthand how to leverage them to enhance their corporate compliance programs. Participants spent the second day of the program with industry specialists and their peers, discussing their own experiences in operating compliance programs.
“We are not financial institutions” historically has been a core fintech mantra heard around the industry. Unconstrained by many regulatory requirements applicable to banks and other financial institutions, fintechs pride themselves on creating deep customer connections, navigating market trends agilely, and creating disruption for traditional competitors.