By John M. Pachkowski, J.D.
As it moves closer to the possible granting of a “special purpose” national bank charter to a financial technology (fintech) company, the Office of the Comptroller of the Currency has established an Office of Innovation as part of its efforts to improve the agency’s ability to identify, understand, and respond to financial innovation affecting the federal banking system.
The Office of Innovation is part of the OCC’s “Recommendations and Decisions for Implementing a Responsible Innovation Framework,” which will be the blueprint that the agency will use to support the ability of national banks and federal savings associations to fulfill their role of providing financial services to consumers, businesses, and their communities through responsible innovation that is safe and sound, consistent with applicable law, and protective of consumer rights. Commenting on the Office of Innovation, Comptroller of the Currency Thomas Curry noted, “By establishing an Office of Innovation, we are ensuring that institutions with federal charters have a regulatory framework that is receptive to responsible innovation and the supervision that supports it.”
Besides the establishment of the Office of Innovation, the framework also provided that the OCC should:
- establish an outreach and technical assistance program;
- conduct awareness and training activities;
- encourage coordination and facilitation;
- establish an innovation research function; and
- promote interagency collaboration.
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