Fintechs Pursue Bank Charters to Boost Funding and Regulation
Fintechs are pursuing bank charters for improved funding and regulatory clarity.
Why it matters: Bank charters offer fintechs enhanced funding opportunities and regulatory clarity, easing GC burdens.
- Nearly 20 fintechs applied for bank charters in 2025.
- OCC granted charters to five crypto firms in December 2025.
- Charters provide access to cheaper funding and payments systems.
- OCC clarified allowable crypto banking activities with Letters.
Fintech companies are increasingly applying for national bank charters to benefit from more affordable funding options and clearer regulatory guidance. This trend marks a significant shift from fintechs partnering with traditional banks to becoming independent financial entities.
In 2025, nearly 20 fintech firms sought bank charters, compared to an average of five annual applications from 2010 to 2023. By securing these charters, fintechs aim to access federally insured deposits and the direct payment systems usually available through banking partnerships. FinWise Bank reported this rising interest.
Illustrating regulatory progress, the OCC approved bank charters for firms like Circle and BitGo in December 2025. This follows the OCC's Interpretive Letters which specify the crypto activities banks can conduct legally.
Jeffrey Hamory, a partner at a growth equity firm, mentioned, "Securing charters allows fintechs to integrate customer services with banking infrastructure." Despite the advantages, transitioning to bank status requires meeting significant compliance standards and maintaining regulatory capital, as discussed in American Banker.
By the numbers:
- 20 fintech applications — nearly 4x the previous annual average.
- 5 crypto firms received charters in December 2025.
Yes, but: Acquiring a bank charter involves meeting stringent compliance and capital requirements.