Fintech Charter Interest Could Be Shaped By Litigation

Fintech Charter Interest Could Be Shaped By Litigation

October 5, 2018, Law360

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.”