States' Model Payments Law May Ease Entry For Fintechs

States' Model Payments Law May Ease Entry For Fintechs

June 14, 2019, Law360

Karen Solomon is quoted in Law360 regarding the Conference of State Banking Supervisors’ push to knock down barriers to entry for small fintech companies. Ms. Solomon says, “CSBS, for example, has released a series of recommendations aimed at streamlining and simplifying the multiple state requirements that apply when nonbank firms conduct business across state lines. The CSBS’ Vision for 2020 initiative is aimed squarely at trying to streamline the many state application processes required for fintech companies to deploy products on a nationwide basis.” She adds that much of this complication stems from the dual-banking system born of federalism in the United States creating a situation in which fintech companies need to make complex decisions about how they want to be regulated and by whom. Every company that wants to engage in banking needs to understand which federal and state banking regulations apply, and it might not always be obvious, she says.