WASHINGTON - A group of state regulators Thursday agreed to 14 recommendations, developed by the fintech industry, that are geared at streamlining state-by-state licensing and supervision process.
The effort through the Conference of State Bank Supervisors marks one of the most significant partnerships between state regulators and fintechs to date, and it includes big names like Paypal, Western Union, and SoFi. Fintechs have long argued the state-by-state licensing process is burdensome. The agreed-upon recommendations with state regulators come at a time when federal agencies are beginning to offer national bank chartering options for fintechs, underscoring the need for states to remain competitive.
"The 100 hours that industry has poured into this effort, I think, that speaks a lot to our optimism around this process and the harmonization effort," said Andrea Donker, vice president of regulatory relations, enterprise risk, compliance and security at Paypal.