Written by Nihal Krishan
The Treasury Department bureau responsible for regulating banks and savings associations is launching a new Office of Financial Technology.
In a statement, the Office of the Comptroller of the Currency (OCC) said it would establish the new department to ensure it has the tools to oversee the fast-changing banking sector, including fintech companies.
Acting Comptroller of the Currency Michael Hsu said: “Financial technology is changing rapidly and banks’ financial technology partnerships are likely to continue to grow in number and complexity. To ensure that the federal banking system is safe, sound and fair today and in the future, we need to have a deep understanding of financial technology and the financial technology landscape.”
He added: “The establishment of this office will allow us to be more agile and promote responsible innovation, in line with our mission.”
The new office will be headed by a chief financial technology officer, who will be deputy comptroller, reporting to the senior deputy comptroller for bank supervisory policy.
The OCC is an independent bureau within the Treasury Department charged with chartering, regulating and supervising all national banks, foreign banks and savings associations in the United States, which together hold more than $15 trillion in assets.
The OCC was established by President Lincoln in 1863 during the American Civil War.