[Photo:  SB3 Digital]

A proposal from U.S. banking regulator, the OCC, to allow financial-technology companies to apply for bank charters drew a range of reactions on Friday from industry executives, policy makers, attorneys and advocacy groups. Here are a few of the early takes on the proposal:

FAVORABLE/POSITIVE.

• Ken Rees, CEO of online lender Elevate Credit.  “I don’t think fintech companies have to go it alone to get the advantages we want because banks do a lot of things really well and fintech companies do a lot of things really well [and] those things don’t necessarily overlap.”
• Colin Walsh, CEO and co-founder of online banking startup Varo Money.  “A national bank charter is a major stamp of approval and consumer trust. It ushers in a whole new opportunity.” Varo, which is building a mobile-banking app that uses artificial intelligence to offer financial advice, presently partners with a bank to provide deposit accounts.

CAUTIOUS/NEGATIVE

• Maria Vullo, Superintendent of NY’s Department of Financial Services.  Her agency “opposes any effort to federalize what states have been doing – and doing well – for over a century.” Ms. Vullo added that the OCC’s proposal “would be irresponsible if it were to ignore the states’ historical role and longstanding expertise in this arena.”
• Sen. Jeff Merkley of Oregon. “I am deeply concerned that the OCC’s plan to offer a national charter will weaken consumer protection standards in online lending and allow FinTech firms to sink to the lowest common denominator rather than abiding by stronger state laws, such as Oregon’s payday lending law.,”