Benefits and Disadvantages of the Fintech Charter

Attorney Brian Korn: Fintech Charters Will NOT Be Effective Unless Federal Preemption Is Available to Holders
– Crowdfund Insider

Manatt’s Brian Korn, a co-chair of the firm’s financial services group, was interviewed by Crowdfund Insider to discuss the fintech charter and the different perspectives on its benefits and disadvantages.

The articled noted that the banking industry overall has opposed the fintech charter, but Korn said some banks are less resistant to the idea.

“Giving banking powers to a Fintech firm simply because it’s new and different is hard to wrap your arms around philosophically,” said Korn. “But, I had thought banks would be against marketplace lending and they actually were pretty ho hum about it because they didn’t see marketplace lenders as a threat to their core business, and much of the technology innovation has been acquired or adapted by larger banks.”

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