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The Office of the Comptroller of the Currency (OCC) outlined a plan for fintech companies to operate nationally under a specialized charter. The change comes in the wake of banks and other traditional financial institutions concerned about the lack of federal oversight on fintechs. Fintechs, which do not accept customer deposits, are not beholden to as many banking laws. OCC director Thomas Curry says, “Technology-based products and services are the future of banking and the economy." This new regulatory movement is expected to welcome more innovative companies to the banking sector.
Rich Daly (@richarddaly) contributor for Forbes cuts through the noise to determine the true value "going paperless". To add value to the consumer, he argues that paperless initiatives must move beyond simplification to optimization: "Too often, going paperless means significant upfront effort only to have a computer decorated with Post-it notes reminding us of our passwords. Electronic communications must do more than simply digitize checks. They must have simple on-boarding, be easy to use, and be interactive."
The I.R.S. is joining oversight discussions on the regulation of digital currencies after issuing a summons in late November to Coinbase, a virtual currency exchange. The regulatory branch is pursuing individuals suspected of hiding income for tax evasion. While the ledger of digital currency trades is public, the identity of the buyer or seller is not. As New York Times contributor Peter J. Henning (@peterjhenning) reports: "You know that fintech has come of age when the government comes knocking at the door just like it does with any other bank or broker."
Cade Metz (@CadeMetz) for Wired predicts that blockchain won't see heavy consumer adoption in the near future: "Bitcoin is certainly not a mainstream digital currency. And Circle's decision to stop operating as a bitcoin exchange is just the latest sign that it won't become one anytime soon." In 2014, Circle said its goal was to bring digital currency into consumer's everyday lives. Yet, like many other startups, it has discovered that providing blockchain technology for the purposes of purchasing goods and services isn't so simple. Instead of throwing the baby out completely, Circle is reimagining alternative uses for its app's interchange with blockchain as a backend technology to power existing forms of currency.
Dynamic discounting can be a valuable financial tool for suppliers. New technology is making early payment opportunities possible through a host of solutions, says Ernie Martin of Receivables Savvy: "...dynamic discounting can be a mutually beneficial transaction that offers significant benefit to suppliers hoping to receive cash early as well as to buyers who desire to pay a little less when satisfying outstanding invoices. "
About the Author
Lauren is a Research Analyst at Nvoicepay. She has six years of experience in the technology and B2B payments industries.Follow on Twitter More Content by Lauren Ruef