While both the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp are examining the possibility of giving federal bank licenses to fintechs, the Federal Reserve isn’t quite ready to give them access to the financial infrastructure. Reuters has reported that fintechs aren’t exactly excited to invest in expansion in the U.S. if they don’t have access to the payment systems, settlement services and other Federal Reserve resources that the Fed has yet to decide if it should let fintechs access. The concern officials at the Fed have revolve around the feeling that fintechs don’t have the strong risk management controls and consumer protections in place that the banks have. Source.
