Information and Alerts

Important Information

Government Actions

As of February 11, 2022:

Novo Platform has entered into a Settlement Agreement with the California Department of Financial Protection and Innovation.  The Settlement Agreement terms and conditions are as follows:

Novo and Novo agrees that in accordance with Cal. Fin. Code §§ 561 and 563 in California, that Novo will cease and desist from using the name “banknovo.com,” “@banknovo.com,” and similar names or references in its business unless and until it becomes licensed or otherwise authorized to engage in the business of banking under the laws of California, another state or of the United States.

Novo shall distance itself from use of the term “banking” and derivatives by clarifying statements on its website, on its mobile app, and in advertising to address the following:

i. Where “banking” terminology is used, Novo shall place a disclosure stating that Novo is not a bank and banking services are provided by its Bank

Sponsor(s). The disclosure shall be in bold and/or increased font size in a clear and conspicuous manner proximate to the use of the banking

terminology.

ii. Novo shall enhance its internal review and approval process for when it presents testimonials that may be perceived as representing Novo as a bank.

iii. Novo shall clarify or annotate in all testimonials it publishes, or causes to be

published, that use “banking” terminology that Novo is a financial

technology company not a bank and banking services are provided by

Novo’s Bank Sponsor(s). Further, Novo shall monitor affiliates and agents

who publish other testimonials and provide clarifying information that Novo

is not a bank in response to such testimonials that use “banking”

terminology.

iv. Where appropriate, Novo shall revise website language to state that

customers can open an account “through” Novo, where existing language

states “Most Innovative Bank” or similar language.

v. In paid Google search results, Novo shall place a statement on Google and

other ads that banking services are provided by its Bank Sponsor(s), which it

will identify by name.

vi. Novo shall include in its website Frequently Asked Questions (FAQ), an

answer that clearly explains that the bank accounts are held at its Bank

Sponsor(s), which it will identify by name.

vii. Novo shall provide a clear and prominent disclaimer during the account set

up process to inform the customer that Novo is a financial technology

company not a bank and banking services are provided by Novo’s Bank

Sponsor(s).

Novo shall enhance its description of Novo’s role as technology, business processor,

and marketing service provider to its Bank Sponsor(s) and make clear that banking

products and services are provided by Novo’s Bank Sponsor(s). The description

shall be clear and conspicuous in the response to the “What is Novo?” question in

the company’s website FAQs.

 Compliance and Reporting. Novo shall establish, implement, enhance, and maintain

testing policies, procedures, and standards reasonably designed to, at a minimum,

ensure compliance with the provisions of this Agreement and with Cal. Fin. Code §

561. Furthermore, by May 15, 2022, and again one year after the effective date of

this Agreement, Novo shall submit to the Commissioner an accurate written

compliance progress report, which, at a minimum describes in detail the manner in

which Novo has complied with this Agreement.

LINK: https://dfpi.ca.gov/wp-content/uploads/sites/337/2022/02/Admin.-Action-Novo-Platform-Inc.pdf