States have voiced their opposition against the OCC's fintech charter proposal and could be a factor limiting the charter from proceeding; with the charter, fintechs can be granted special purpose national bank status which includes national governance with exemption from state laws; many states have actively integrated regulations and processes for alternative lenders, including state usury laws and regulations for payday lenders; opposing states say the charter would complicate existing state level laws and initiatives. Source
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Global fintech patents reached 9,546 in 2016 with a growth rate of 49% over the past five years; the US leads in fintech patents with 4,523 and it has twice as many fintech patents as the second ranking country, China; both startups and traditional financial services firms have been active in the patent process for new fintech technology. Source
Statistics show that volatile incomes are a factor affecting financial stress for many families; in today's market, many fintech companies are seeking to target those families with solutions that help reduce their financial stress; the Wall Street Journal provides details on apps for this target market including Even, Digit and Prism; while services for financially stressed families have reported significant interest from fintech developers, skeptics caution that achieving profitability for these businesses could be challenging. Source
Kroll Bond Rating Agency has assigned ratings for Avant's most recent securitization deal; the portfolio includes three tranches of consumer notes valued at $192.6 million; ratings for each of the three tranches are included in the chart above and range from A- to BB. Source