Fintech Charter Interest Could Be Shaped By Litigation

Randy Benjenk is quoted in Law360 regarding the uncertainty surrounding how many fintech firms will apply for special-purpose charters from the OCC. Mr. Benjenk says, “The question is whether the benefits of the charter will outweigh its burdens and the risks involved. I think you’ll see some fintechs conclude that, if they’re going to be regulated like a bank, they may as well apply for a full-service charter and get access to deposit funding and insurance.” He adds,“For a fintech company that thinks it has a great lending platform but won’t be able to use it in the way it otherwise would because of Madden litigation or true lender litigation, I think the preemptive value of the charter by itself would be more of a benefit.”