Online lending has become extremely lucrative for fintech, just as demand for personal and business loans have started to pick up steam. Deregulation of the financial sector also promises to open up space, as the US Treasury Department and Office of the Comptroller of the Currency have just made federal charters a reality for fintech firms. With a maturing market and friendly regulatory environment developing, this could be prime time for fintech.
President Trump has long-supported deregulation in the financial sector. Now, the administration is making moves to open up the space for financial technology companies as well. On Tuesday, the Treasury Department released a report with more than 80 recommendations aimed at tailoring regulations for nonbank financial institutions and encouraging the development of financial technology. The report supports granting banking charters to fintech companies like Square, which withdrew a request to create an industrial loan company earlier this month. Hours later, the Office of the Comptroller of the Currency said it would start accepting national charter applications from financial technology companies, giving so-called fintech firms a path to federal oversight for the first time ever . . .