b'acknowledges that consumer-authorized data accessLooking Ahead to 2021and use holds the promise of improved and innovative consumer financial products and services, enhancedIn 2020, Goodwin released its inaugural Global Survey control for consumers over their financial lives, andon the State of Financial Technology. The Survey increased competition in the provision of financialreviews major Fintech trends, including the services to consumers, the CFPB states that consumersprioritization of Fintech adoption and investment, still face certain potential risks if they authorize accessFintech potential for digital disruption, challenges to consumer data, including some risks relating to thefacingFintechcompanies, and drivers of capital methods by which they authorize such access and byinvestment in Fintechcompanies. We expect these which the records are collected and used by authorizedtrends to continue through 2021. Additionally, the new entities. Comments to the proposed rulemaking wereadministration could present both opportunities and due by February 4, 2021.challenges for Fintech companies seeking to further expand their business capabilities and consumer Other Developments products. A renewed emphasis on closing access Fintech Bank Charters gaps and promoting inclusion in financial services In July, the OCC granted preliminary approval for ashould benefit the Fintech industry. However, the new national bank charter to the first consumer Fintechadministrations expected shift toward more aggressive company. By October 2020, a second Fintech companyenforcement and rulemaking by the CFPB and other received preliminary, conditional approval from theagencies may create new challenges for Fintech OCC for its application for a national bank charter.companies in 2021. A national bank charter would enable these Fintech companies to hold customer deposits and make loansWhat to Watch without having to rely on a bank partner. However, it remains to be seen whether these Fintech ChartersContinued regulatory expansion and enforcement will be allowed to operate for the long-term. In 2019, aactivity by federal and state agencies, with federal district court in Lacewell v. OCC, No. 19-4271,Californias mini-CFPBthe DFPIlikely leading agreed with the New York DFS that the OCCs grantingthe way.of a charter to a non-depository institution exceeded its authority under the National Bank Act. That decision isEmerging litigation challenging regulatory currently on appeal to the Second Circuit. expansion.Fintech PPP LoansIn April, the Small Business Administration (SBA) launched the Paycheck Protection Program (PPP), a loan program designed to assist small businesses in keeping their employees employed during the COVID-19 pandemic. The SBA initially sought applications only from certain lenders, including federally insured depository institutions and federally insured credit unions, effectively excluding Fintech entities from participating. Many Fintech companies were, however, eventually approved as nonbank PPP lenders. 23'