Sergey Savastiouk's Avatar
published in Blogs
Aug 28, 2018

Regulatory Changes in the Works to Advance FinTech

The US Office of the Comptroller of the Currency announced on July 31st that it would proceed with a plan to offer national banking charters to fintech firms offering loans or online payments, allowing them to bypass the state laws that currently govern fintech and nonbank services. The announcement came after a report from the Treasury Department recommended that the OCC move ahead with its plans to offer national fintech charters, characterized as “…a more efficient, and at least a more standardized, regulatory regime, than the current state-based regime in which they operate.”

 

 

Online lenders like SoFi are becoming increasingly ubiquitous, leveraging technology to create a new banking system that exists beyond traditional frameworks. But the “state-based regime” that lenders with nationwide ambitions must follow can be unwieldy. There are two options for lenders – either secure licenses from individual regulators with different laws in all 50 states, like SoFi, or partner with regulated banks, like LendingClub. The new fintech charter would allow companies to disregard state rules and bypass partnering with traditional banks.

By making it easier for fintech companies to operate, federal officials hope they will advance the evolution of fintech companies and services and keep pace in an increasingly competitive financial climate. “Companies that provide banking services in innovative ways deserve the opportunity to pursue that business on a national scale as a federally chartered, regulated bank,” said Comptroller of the Currency Joseph M. Otting.

The 222-page report, the last of four ordered by President Trump in early 2017 as a review of American financial regulations, made 80 recommendations to help companies “more rapidly adopt competitive technologies, safeguard consumer data, and operate with greater regulatory efficiency,” according to the Treasury Department. Several recommendations were controversial – among them developing national rules for data security and data breach notifications and suggesting that the Consumer Financial Protection Bureau rescind stringent nationwide rules on payday and other short-term loans. Treasury Secretary Steven Mnuchin defended the moves as necessary to “keep pace with industry changes and encourage financial ingenuity to foster the nation’s vibrant financial services and technology sectors.”

 

 

State regulators, who have long opposed granting national charters to fintech firms, were less enthused by the announcement. John W. Ryan, president of the Conference of State Bank Supervisors, called the new charter policy “a regulatory train wreck in the making”, advising that state regulators were “keeping all options open” to try to stop it. Unsurprisingly, trade groups representing fintech companies, like The Marketplace Lending Association, lauded the recommendation as “…a major step forward in favor of responsible innovation and greater access to capital for borrowers nationwide.” How national charters will work in practice remains to be seen, but fintech lenders can rejoice for now about a much more favorable landscape for their businesses.

John Jacques's Avatar
published in Blogs
May 16, 2022
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Edward Flores's Avatar
published in Blogs
Apr 29, 2022
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Sergey Savastiouk's Avatar
published in Blogs
May 16, 2022
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Sergey Savastiouk's Avatar
published in Blogs
Mar 14, 2023
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Dmitry Perepelkin's Avatar
published in Blogs
Mar 14, 2023
5 Habits that Lead to Successful Investing

5 Habits that Lead to Successful Investing

To consistently make money in this industry, you need emotional fortitude, an analytical mind, and a willingness to self-reflect. Despite trading and investing being two different activities, these principles can be applied to both.Conversely, investors with good habits often become great traders.  Rather than full sentences for titles, we’ve labeled each of our top-five investing habits using a single word principle.
Allana's Avatar
published in Blogs
Mar 23, 2023
What’s the Difference Between Data Analytics and Machine Learning?

What’s the Difference Between Data Analytics and Machine Learning?

Artificial intelligence (AI) technology is developing rapidly.Data mining can deliver raw numbers, but it does not necessarily provide actionable insights. Structure is necessary to taking abstract information and extracting commonalities, like averages, ratios, and percentages.
Sergey Savastiouk's Avatar
published in Blogs
Mar 13, 2023
4 Tips for Fast, Effective Stock Analysis

4 Tips for Fast, Effective Stock Analysis

With just a few clicks, an investor can search for individual stocks, categories of stocks, sectors, or investment themes, and then he or she can conduct a full range of technical and fundamental analysis within seconds.All powered by Artificial Intelligence.  Below, we give you 5 tips for fast, effective stock analysis using Tickeron’s Screener.
Sergey Savastiouk's Avatar
published in Blogs
Mar 20, 2023
5 Golden Principles in Investing

5 Golden Principles in Investing

You have enough faith in that stock, based on research, that the return will equal or exceed the investment.  Do unto others.The principles outlined here will ensure that happens.  Principle #1: Diversification Investors can’t be one-dimensional when constructing a portfolio.
John Jacques's Avatar
published in Blogs
Mar 24, 2023
If Hedge Funds are Using AI to Invest, Why Shouldn’t You?

If Hedge Funds are Using AI to Invest, Why Shouldn’t You?

Some of the world’s biggest financial institutions have devoted multi-million dollar budgets to developing algorithms that can find patterns in the market, identify trends, and perform automated trading designed to take advantage of even the smallest price movements. The AI revolution is so big that as it stands today, the world’s five biggest hedge funds all use systems-based approaches to trade financial markets.Indeed, quantitative trading hedge funds now manage $918 billion (according to HFR), which amounts to 30% of the $3 trillion hedge fund industry – a percentage continues to grow with each year that passes.
Sergey Savastiouk's Avatar
published in Blogs
Mar 15, 2023
The five most important Lessons Learned After 10,000 hours of Trading

The five most important Lessons Learned After 10,000 hours of Trading

Ten thousand hours of active trading, broken down into forty-hour weeks, amounts to almost five years. Having surpassed that milestone myself, I now understand why it's significant for any trader's journey. The early years taught me valuable lessons that have shaped my approach to trading. It's a misconception that great traders are born with innate talent. The truth is that it takes years of...