A landmark shift is underway in the fintech industry. After years of building disruptive products on top of sponsor bank infrastructure, a growing number of scaled fintech companies are seeking their own full bank charters — a move that would let them undercut the banks they once relied on and compete directly for deposits, lending, and payment services.
The trend is being driven by margin pressure. As fintech unit economics have matured, the fees paid to sponsor banks for access to payment rails, FDIC insurance, and regulatory cover have become a significant drag on profitability. For companies processing billions in transactions annually, eliminating those fees through a direct charter makes compelling financial sense.
The regulatory environment is more receptive than it has been in years. The Office of the Comptroller of the Currency (OCC) under the current administration has signaled openness to approving fintech charter applications that were previously stalled or denied. Several companies are reportedly in advanced stages of the application process, with decisions expected later in 2026.