A group of state regulators will soon begin offering a simpler licensing process for money services businesses, including fintech firms, to operate across multiple states.
The pilot for licensing money servicers will initially be offered by seven states, Washington, Georgia, Texas, Illinois, Kansas, Massachusetts and Tennessee, the Conference of State Bank Supervisors announced Tuesday. The move is mainly in response to fintech firms that have long argued that the main route to doing business is by getting a license in each state, which can be a cumbersome and repetitive process. CSBS plans to launch a pilot in April, when regulators will begin identifying companies as potential candidates.
Creating a more uniform licensing process is a part of a larger strategy launched last May called Vision 2020 in which the state regulators are trying to streamline state regulation to help fintech firms and other nonbank money service businesses, called MSBs.
Read more in American Banker.