The payments processor Square has big plans in banking — but even after filing an application to charter an industrial loan company, it still doesn’t see itself as a competitor to most financial institutions.
The Independent Community Bankers of America had initially called for a moratorium in response to SoFi's application, and says now that Square's bid "has significantly increased our concerns."
Download this report for the latest insights including: • How fintech companies are disrupting the banking experience • What motivates the millennial banking customer • How to create seamless digital engagements that lock in customer trust
Associate DirectorMilken Institute's Center for Financial Markets
Many of the arguments in this debate have less to do with the applicants’ qualifications than with traditional banks’ fear of new, innovative competitors.
The changes to the National Multistate Licensing System will include a more customized user experience for companies and functionality for states to share examination data.
The debate over the separation of banking and commerce has come roaring back, but instead of Walmart in a spotlight role, many banks have centered on a player they see as the new villain: fintech.
States must recognize how their patchwork of different regimes stifles innovation, but they also have an opportunity to help maintain U.S. competitiveness in the global fintech marketplace.
