Acting Comptroller of the Currency Keith A. Noreika reaffirmed his support for measures to facilitate growth in the online lending industry.
In remarks before the Online Lending Policy Summit in Washington, D.C., Mr. Noreika reiterated points of focus from his June Senate testimony (see previous coverage) that characterized the growth of alternative lending as the "natural evolution" of banking. He explained that online lending has doubled every year since 2010, and that future growth is likely to be significant. At the same time, he acknowledged that the maturing nature of the industry presents new challenges, as evidenced by the fact that even recognizable companies in the marketplace struggle to be profitable. Mr. Noreika suggested that it will be important for these companies to make adjustments in response to new market conditions and to "effectively manag[e] evolving risks."
Mr. Noreika highlighted some of the efforts by the Office of the Comptroller of the Currency ("OCC") to promote innovation. These efforts, which are overseen by the Office of Innovation, include (i) "office hours" that allow FinTech companies to discuss regulatory issues with OCC staff, (ii) exploring regulatory sandboxes and pilot programs to allow for a degree of experimentation, and (iii) supporting national bank charters for FinTech companies. Mr. Noreika stated that he continues to support offering special-purpose national bank charters to nondepository FinTech companies, and explained that the OCC currently is fighting lawsuits (filed by the New York Department of Financial Services and the Conference of State Bank Supervisors) challenging its authority in this area.
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