Fintech Charters on the Rise

2025 may well become the year of the charter in fintech. According to various reports, more than twenty applications from fintechs and non-bank players have been filed this year alone for new bank charters, conversions or acquisitions. This is an all time high.

Why now? One factor is the shifting regulatory winds. Agencies such as the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) are signaling greater openness to fresh charter filings from fintechs with innovative business models. Another factor is that many fintechs have grown in scale and ambition, making banking charters more appealing and justifiable. Benefits include access to deposits, advantaged cost of funds and regulatory credibility.

However, the journey is not without headwinds and headaches. Obtaining a charter demands robust compliance, governance, capital and risk-management frameworks. Fintechs may struggle to marry their agile culture with the demands of being a regulated bank. Understanding the long-term obligation of compliance is a different kind of mindset for most fintechs.

For fintech leaders the takeaway is clear. If you’re contemplating the charter route, now is the window of opportunity, but only if you’re prepared. This is likely to reshape competitive dynamics in your partnerships with sponsor banks.

There is lot to consider and plan for. RPY can help. Reach out to us at info@rpyin.com.