Because the parent companies of exempt ILCs are not subject to the BHC Act, authorizing ILCs to operate essentially as full-service banks would create an unlevel competitive playing field among banking organizations and undermine the framework Congress has established for the corporate owners of full-service banks.
Needless to say that we support responsible fintechs, given their link to increased efficiencies and greater depth of outreach, which are often considered as pain points of legacy financial institutions. We likewise welcome the growth opportunities brought about by the entry of a growing number of fintech firms into the financial services space.