A Survey of the Different Licensing and Chartering Options for FinTechs: Finding the Best Fit for Your Company

May 1, 2018 8:50am

Stephen Cheng
Vice President, Compliance
First Data Corporation (New York, NY)

Youssef Sneifer
Microsoft Payments, Inc. (Seattle, WA)

Margaret E. Tahyar
Davis Polk & Wardwell LLP (New York, NY)

Sean Ruff
Morrison & Foerster LLP (Washington, DC)

Chris Daniel
Paul Hastings LLP (Atlanta, GA)


Brian G. Barrett
Eversheds Sutherland (US) LLP (New York, NY)

  • Closely examining the different licensing/chartering options for FinTech companies:
    • OCC Fintech Charter / license as a Special Purpose Bank
    • Partnering with a retail bank
    • Licensed Money Transmitter
    • State Trust Company Charter
    • Industrial Loan Company Charter
  • Assessing the regulatory implications, compliance challenges and costs, and operational considerations surrounding each of these options
  • What should banks and Fintechs consider before they partner?
    • Assessing the positives and negatives of choosing the bank partnership model?
  • Addressing the recent applications by Sofi and Square for Industrial Loan Company Charters
    • If approved, what will the implications be?
  • Examining the latest developments and trends in fintech chartering/licensing decisions and what they means for the industry going forward