In a FinTech friendly move, banking regulators from 7 states have agreed to recognize each others findings, in an effort to help new entrants get to market more efficiently. An interesting byproduct of this may be lessening the importance of the OCC's proposed special purpose FinTech charter.
Banking regulators of seven U.S. states have agreed to simplify the way financial technology companies can apply for licenses, in a bid to make it easier for businesses to offer their services nationwide. The states of Georgia, Illinois, Kansas, Massachusetts, Tennessee, Texas and Washington, will recognize each other’s findings when assessing the suitability of companies applying for money service business licenses, the national organization of state bank regulators said on Tuesday. The initiative responds to longstanding complaints by fintech startups about the costly and time consuming process of having to secure licenses separately in each state in order to operate in the United States.