“Conditional approval” for a financial technology (fintech) company to change the business model of an Illinois bank — after the firm completes its purchase of the bank – was approved by the national bank regulator, the agency announced late Monday.
The Office of the Comptroller of the Currency (OCC), in a release, said it had conditionally approved the acquisition of CenTrust Bank, N.A., of Northbrook, Ill. The bank has changed its name to SmartBiz Bank, N.A. It has applied to change its business model to conduct small business lending activities on a nationwide basis, the OCC said.
In a statement, Acting Comptroller of the Currency Rodney Hood said the conditional approval shows how the agency supports regulations for “innovations in banking.”
“A safe, sound and fair fintech business model has a place in today’s federal banking system,” Hood said.
In his previous position as a member and chairman of the National Credit Union Administration (NCUA) Board, Hood spoke frequently of his support for fintech involvement with credit unions.
According to a letter released by the OCC (dated Feb. 18), the application “is part of a larger transaction in which Billfloat, Inc., a Delaware corporation doing business as SmartBiz Loans (SmartBiz), seeks to become a bank holding company by indirectly acquiring CenTrust.”
OCC Conditionally Approves Fintech Business Model for a National Bank
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