Fintech Firms Have Sought Banking Charters
Major fintech companies are moving to acquire their own bank charters to bring operations in-house.
Updated on Sept. 21, 2026 in Financial Services
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Large fintech firms are increasingly securing their own banking charters to gain control over product development and reduce funding costs. This shift has prompted sponsor banks to narrow their business focus toward specialized sectors.
Why it matters
By moving banking functions in-house, fintechs aim for greater operational autonomy and lower costs. Meanwhile, sponsor banks are diversifying their client bases to mitigate potential revenue losses as their fintech partners look to exit.
The Bancorp shares fell 21.7% to $50.84 between September 8 and September 21, 2026, a decline of $13.55. Chime represented 8% of the company's Q2 2026 revenue.
The players
Chime
Chime is a financial technology company that provides fee-free mobile banking services to its users.
The Bancorp
The Bancorp is a financial institution that provides private-label banking and technology solutions to non-bank companies.
Valley Bank
Valley Bank is a financial services firm based in Morristown, New Jersey, that is pivoting toward banking-as-a-service.
Hatch Bank
Hatch Bank is a financial institution based in San Marcos, California, that has focused on banking-as-a-service for over a year.
The details
Companies like Chime have proposed acquisitions such as Stride Bank to bypass the need for traditional sponsor banks. In response, institutions like Valley Bank in Morristown and Hatch Bank in San Marcos are pivotally expanding their banking-as-a-service offerings for other software clients.
Timeline
Chime accounted for 8% of The Bancorp's revenue during Q2 2026.
The Bancorp share price saw a period of decline from September 8, 2026.
The Bancorp share price drop was reported on September 21, 2026.
The contract between Chime and The Bancorp is set to expire in mid-2028.
Market Landscape
This move reflects a broader industry shift toward vertically integrated banking-as-a-service models. It positions fintechs to bypass traditional intermediaries while forcing sponsor banks to reevaluate their reliance on single-client revenue streams.
Average consumers may see changes in their banking interface or service terms as fintechs bring their platforms under proprietary charters. While service continuity is expected until contract expirations, long-term brand partnerships and rewards programs could shift.
The takeaway
Fintechs are moving toward owning their own bank charters to achieve greater control over their financial products and long-term costs. Customers should monitor their account agreements as these companies restructure their back-end banking partnerships.
Further reading
Learn more about the evolving landscape of Financial Services.
Source note: This article includes information reported by American Banker.
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