Fintechs ditch partnerships with Wells Fargo, race for their own bank charters

The financial revolution is here: fintechs are cutting ties with legacy banks to control their own destiny. Regulators are flooding with applications—here's what it means for your money.

, and Administrator

2026 February 8 . 1:26 PM

1 min read

The image shows a cartoon of a man in a blue jacket and red pants standing in front of a building... — The image shows a cartoon of a man in a blue jacket and red pants standing in front of a building with a crown on his head. At the bottom of the paper, there is text that reads "Bank Transfer, or, a New Way of Supporting Public Credit".

Fintechs ditch partnerships with Wells Fargo, race for their own bank charters

The path to becoming a full-fledged bank is widening for fintech firms. More digital companies are now pursuing bank charters instead of relying on traditional lenders like Wells Fargo or Fifth Third Bank. This shift marks a major change in how fintechs operate and fund their services.

In December 2025, the Office of the Comptroller of the Currency (OCC) granted conditional approvals for five national trust bank charters. Among the recipients were crypto-focused firms Circle and Ripple. Circle's proposed First National Digital Currency Bank aims to comply with the GENIUS Act while offering clearer rules for institutional clients.

The OCC also approved SmartBiz Loans to acquire Detroit's Centrust Bank. This move lets the fintech skip the lengthy process of building a US bank from the ground up. Meanwhile, Revolut is taking the de novo charter route, signalling a break from fintechs acting as mere front ends for established banks.

Regulators have seen rising interest in new bank licences. The OCC received 18 de novo applications in 2025, issuing five preliminary approvals—far more than the three applications filed between 2021 and 2024. Over 10 additional applications remain pending with the FDIC, though specific applicants beyond Nu Holdings (which gained OCC approval in September 2025) have not been disclosed.

A bank charter gives fintechs access to low-cost funding and federal payment systems. It also allows them to fund loans directly from customer deposits rather than relying on external partners. Industry observers view this trend as a way for fintechs to future-proof their operations and reduce their dependence on traditional banks like TD Bank or US Bank, reshaping the financial services landscape.