Fintech Litigation To Watch In 2020

Mike Nonaka is quoted in Law360 regarding the New York Department of Financial Services and the Conference of State Bank Supervisors’ fintech charter, which is being challenged for its validity in the Southern District of New York. Mr. Nonaka says, “The [fintech charter case] is important litigation, because many of the companies that could be interested in the charter are blue chip fintech companies that have major client bases and major operations, and the entrance of those types of companies into the banking system is a noteworthy development in and of itself.”

He adds that that in 2020, certain trends like the growth in fintech-bank partnerships will continue largely unaffected by the fintech charter litigation. “Bank-fintech partnership growth is more attributable to the fact that there are common interests in combining the technology, scale and costs of funds that both sides have as advantages and offering products and services in an augmented way. So I think that will continue independent of what happens with the charter.”