Fintechs want to become nationwide lenders, but they just hit a major roadblock

New York’s banking regulators can proceed with their case to prevent fintech companies from acting like banks, a judge ruled Thursday.

The regulators want to block the federal government from giving fintech companies national licenses that would allow them to pay consumers’ checks and lend them money. Online lending from the “fintech” sector is booming — prompting a legal duel between state and federal banking regulators on whose rules the budding industry must follow.

Manhattan Federal Judge Victor Marrero ruled that the New York State Department of Financial Services could proceed with two of its three claims against the Office of Comptroller of the Currency (OCC), an independent bureau within the U.S.

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