U.S. OCC to establish fintech innovation office

The Office of the Comptroller of the Currency (OCC) announced that it will establish a dedicated office to responsible innovation and will implement a framework in order to improve the agency’s ability to identify, understand, and respond to financial innovation affecting the federal banking system.

The innovation framework office will be headed by a Chief Innovation Officer assigned to OCC Headquarters in Washington, New York, and San Francisco. This office will be the central point of contact for requests and information related to innovation, the release stated. This will continue OCC’s assessment of granting a special purpose national bank charter to nonbank fintech companies.

“The OCC supports responsible innovation that enhances the safety and soundness of the federal banking system, treats customers fairly, and promotes financial inclusion,” Comptroller of the Currency Thomas J. Curry said. “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.”

The office will also implement other aspects of the OCC’s framework for responsible innovation including conducting awareness and training activities for OCC staff, establishing an outreach and technical assistance program for banks and nonbanks, establishing an innovation research function, encouraging coordination and facilitation, among others.

The office is expected to commence its operations in first quarter 2017.