OCC Initiates Push To Reassess Banking Innovation Rules

OCC Initiates Push To Reassess Banking Innovation Rules

June 4, 2020, Law360

Karen Solomon spoke with Law360 about the Office of the Comptroller of the Currency’s push to speed up the digital transformation in banking. Ms. Solomon says, “Acting Comptroller Brooks has been a strong advocate for the use of technology in banking. This ANPR clearly places technology and innovation at the top of his agenda for the OCC.”

The agency’s request for comments on whether the existing legal standards around the use of digital technology in banking creates "unnecessary hurdles or burdens to innovation by banks," she says. “Although the OCC has previously conducted specific technology-related initiatives — the non-depository fintech charter is an important one — this advance notice of proposed rulemaking signals an intention to make comprehensive changes in the agency's rules; it is not necessarily limited to revisions targeted to a specific area of activity.”

She adds, that input from fintechs, banks, and consumers will be an important resource for the OCC as it seeks to develop updated regulations around digital innovation in financial services. “The better the OCC understands the use cases in banking for, say, artificial intelligence and machine learning or distributed ledger technology or other new technologies as they develop, the more likely it is to be comfortable supervising those activities which, in turn, should encourage additional innovation.”