Search
 
Commentary

Fintech Banks: A New Uber?

One expert delves into the credit union industry's fear of being Uberized.

By Richard Garabedian | Updated on January 03, 2017

The Office of the Comptroller of the Currency (“OCC”) recently announced that it would consider applications by Fintech companies to organize a national bank to conduct their activities. This should be a wake-up call for many institutions, but particularly credit unions and other community institutions. The action by the OCC was inevitable in light of the developments in the financial services industry and makes good economic sense since electronic banking is cost effective and can reach consumers any time day or night. The OCC clearly has emerged as a leader and an enthusiast of wedding technology to the bank charter. The OCC noted that such banks, as should be the case, will be subject to the same safety and soundness standards, albeit with any modification due to the nature of their business.

The credit union industry has already suffered a well-known adverse effect of technology due to the impact of Uber on the taxi industry and medallion lenders in the New York City metropolitan area. Like many competitive threats the impact was not recognized until it was too late. The Uber effect has taken some time to take hold and now it is in full force. In fact, the term Uber has often been turned into a verb: as a credit union client of mine recently told me that he did not want to be Uberized!

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Why Your CU Needs a Chief Data Officer

Why Your CU Needs a Chief Data Officer

Henry C. Meier, Esq. |

There are too many data-related questions to answer and legal issues hanging around to not have a data chief at the helm.

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.