Regulatory Outlook for Fintech and Banking, June 18, 2024

A big thank you to Anna Baram who provided the key take-away messages from the event.

On June 18, FWSF held a “Regulatory Outlook for Fintech and Banking” event featuring Michele Alt, Partner and co-founder of the Klaros Group, which advises banks and fintechs on complex regulatory issues related to U.S. licensing and business plans.

Michele started the presentation by sharing the latest statistics on the formations and transactions within the U.S. banking sector, drawing attention to the continued decline in the new and the overall number of U.S. bank charters. She walked the audience through the factors that regulators consider in reviewing new bank applications as well as business plan requirements for new banks. Highlighting prolonged regulatory review timelines, which Michele characterized as a barrier to entry, she explored a number of potential reasons for the longer process and considered consequences of the status quo for the overall banking sector risk, citing the recent bankruptcy of a fintech middleman as an illustration.

Michele closed her remarks by making a case that the current regulatory review process and the revealed regulatory policy preferences are not rooted in any statutory authority. She projected that more non-banks will continue to seek bank licenses in the future.

The event concluded with a lively Q&A with the audience.