Fintech Charter Boom Pushes Regional Banks to Bolster Defenses

Regional banks have used Banking-as-a-Service and embedded-finance partnerships to supply charters, compliance infrastructure and deposit accounts to technology platforms in exchange for fees and funding. That model faces pressure as fintech and cryptocurrency companies pursue their own licenses, allowing them to bypass sponsor banks and compete directly for customers and deposits. Incumbents retain a trust advantage through Federal Deposit Insurance Corp. coverage of as much as $250,000 per depositor, per insured bank.

Data published on Jan. 22, 2026 showed the Office of the Comptroller of the Currency received at least 18 charter applications in 2025, matching the previous four years combined. PayPal and Nissan sought industrial loan company charters, while Checkout.com applied for a Georgia limited-purpose bank charter. Advisers say regional lenders should market FDIC protection more aggressively online, assess each fintech partner’s competitive and revenue risks, and build direct digital products and deposit channels before collaborators become licensed rivals.