Modern Treasury applies to establish national bank trust

Modern Treasury is moving to become a national bank trust. This is a significant shift for a company that currently provides the underlying software for money movement. For retailers and operators, this means the infrastructure supporting your payment flows and financing disbursements is becoming more institutionalized. If you use modern payment platforms to move funds between lenders, customers, and your own accounts, this move suggests a future with fewer middlemen. By obtaining a national charter from the OCC, Modern Treasury can hold deposits and settle transactions directly rather than relying entirely on third-party partner banks. For your business, this could eventually lead to faster settlement times and lower technical failures during the funding process. When a customer is approved for financing at the point of sale, the speed at which those funds reach your bank account depends on these 'plumbing' providers. A national trust charter also brings stricter federal oversight. This gives merchants more peace of mind regarding the security and compliance of their financial technology stack. While this doesn't change your daily financing operations today, it signals that the tools powering consumer lending are becoming more stable and integrated into the formal banking system.

Source: Finextra — Lending

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