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ogy environment and they need to have the opportunity   tion. Fintech companies have done a lot to change how
                    to use those rules to fill market needs.          banking services are delivered, and there will continue to
                                                                      be a place for them in the overall system, whether some of
                    You are the first comptroller in decades who is a banker—  them decide to become banks or not. Consider market-
                    and a banker who comes from outside of Washington,    place lenders. Many of them are serving a different
                    D.C. How will this background affect how the OCC         population than mainstream banks by accepting
                    interacts with its supervised institutions?               greater risk and underwriting loans that banks
                    I  think  my  experience  as  a  banker  can  pro-         may not be willing to originate. The market
                    vide some practical insight and direction to                can support both, give consumers more choice
                    improve how the agency operates and where                   and  expand  inclusion.  We  welcome  banks
                    we take policy actions. I have worked in vir-              continuing  to  pursue  innovation  in  order  to


                             THE LAWS AND REGULATIONS AROUND THE BANK SECRECY ACT AND ANTI-MONEY

                       LAUNDERING ARE INTENDED TO PROTECT OUR FINANCIAL SYSTEM FROM BEING MISUSED FOR
                      ILLEGAL PURPOSES. BUT RATHER THAN SERVING THAT GOAL, OUR SYSTEM HAS EVOLVED INTO A
                          SERIES OF GOTCHAS AND OTHER UNHELPFUL ACTIVITIES. WE NEED A FRESH APPROACH.




                    tually every segment of the industry, including serving   improve the products and services delivered to their cus-
                    consumers,  businesses,  trust  functions,  private  bank- tomers and make their operations more efficient.
                    ing, investment services, legal, human resources, compli-
                    ance, audit, treasury, financial management, operations   What is your view of the Volcker Rule?
                    and technology. This experience provides a broad base  Volcker needs to be simplified. I think most of the big
                    of knowledge that will be helpful and insightful in my   banks have adjusted, but the rule is still a challenge for
                    role as comptroller.                              small and midsize banks that were not the original tar-
                                                                      gets of the rule in the first place. We are working with
                    Your predecessor opened a new debate in banking   our  fellow  regulators  and  using  the  comments  we  re-
                    starting with responsible innovation. What’s your view   ceived over the past summer to find some space within
                    of innovation and financial technology companies today?  the rule where we can make things less complex and re-
                    Innovation  is  just  how  work  gets  done  today  and  inno- duce the burden on those small and midsize banks.
                    vation  has  been  part  of  banking  for  150  years.  Wave  af-
                    ter wave of innovation has made banking more accessible   What is your view of supervision and
                    and convenient. The latest wave of innovation has accel-  examination in the national banking system?
                    erated that and helped make banking more efficient, and  As  a  banker,  I  wanted  my  bank  to  be  a  federally  char-
                    it  has  personalized  banking  for  millions  of  people,  giv- tered institution because I slept better knowing that the
                    ing them greater control over their finances. That’s a good  OCC was my regulator. I think our nation’s banks and
                    thing. We need to make sure that progress doesn’t leave  savings  associations  are  the  best  regulated  and  super-
                    some consumers and communities behind, and we need  vised financial institutions in the world.
                    to be sure that innovation does not result in unintended   As comptroller, I want to find ways to provide that
                    risk to the safety and soundness of the system as a whole.  same high level of supervision, but more efficiently and
                                                                      effectively. One way we can do that is by empowering the
                    What are your thoughts on granting                examiners in the field. Over time, too much oversight of
                    a charter to fintech companies?                   the  examination  process  and  decision  making  shifted
                    I have not yet decided whether the OCC will use its au- to Washington. On-the-ground examiners have the best
                    thority to issue special-purpose national bank charters to  line of sight on what is occurring in the banks they over-
                    non-depository  fintech  companies  engaged  in  the  busi-  see, and Washington needs to make sure they have the
                    ness of banking. That is something I need to study more  resources, training and freedom to make the calls. As a
                    closely. There are still a lot of questions that need to be  banker, I relied on the examiners in my bank. They pro-
                    answered before moving ahead. The best innovation that  vided valuable insight and expertise. In the end, exam-
                    occurs outside of the banking system always finds its way  iners and bankers work toward the same goal—a healthy,
                    into  the  system  through  purchase,  partnership  or  imita-  operating banking system. H


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