Consumer Finance Monitor

Why do Fintechs Want to Become Banks?


Listen Later

A great number of fintechs are contemplating owning a bank or obtaining a banking charter—either a national bank charter, a state bank charter or a special purpose charter. In this episode, we are joined by our special guest Michele Alt, co-founder and partner of Klaros Group, an investment and advisory firm, and Scott Coleman, a partner in our Consumer Financial Services Group who leads our banking practice. Both Michele and Scott help banks and fintechs navigate the complicated regulatory issues that are critical to their growth and sustainability.

We discuss the reasons why fintechs might want to become banks, and why regulators are reluctant to grant them charters. Alt says that a bank charter provides a fintech with low-cost funding in the form of FDIC-insured deposits and it eliminates the applicability of myriad state licensing requirements. On the other hand, she says, there are onerous capital requirements and regulators often are reluctant to embrace innovation. We discuss how some regulators fear that fintechs are fueled by growth over profits and how it could lead to lax management practices. Regulators have reason to be concerned about those risks, and if you charter a bank, you are responsible for it.

Alan Kaplinsky, Senior Counsel in Ballard Spahr’s Consumer Financial Services Group, leads the conversation.

...more
View all episodesView all episodes
Download on the App Store

Consumer Finance MonitorBy Ballard Spahr LLP

  • 4.9
  • 4.9
  • 4.9
  • 4.9
  • 4.9

4.9

45 ratings


More shows like Consumer Finance Monitor

View all
On the Media by WNYC Studios

On the Media

9,157 Listeners

Political Gabfest by Slate Podcasts

Political Gabfest

8,486 Listeners

Marketplace by Marketplace

Marketplace

8,638 Listeners

Bloomberg Law by Bloomberg

Bloomberg Law

360 Listeners

Planet Money by NPR

Planet Money

30,688 Listeners

Freakonomics Radio by Freakonomics Radio + Stitcher

Freakonomics Radio

32,075 Listeners

The Lawfare Podcast by The Lawfare Institute

The Lawfare Podcast

6,278 Listeners

The NPR Politics Podcast by NPR

The NPR Politics Podcast

25,784 Listeners

The Daily by The New York Times

The Daily

110,822 Listeners

Bold Names by The Wall Street Journal

Bold Names

1,458 Listeners

Today, Explained by Vox

Today, Explained

10,137 Listeners

Throughline by NPR

Throughline

16,093 Listeners

The Ezra Klein Show by New York Times Opinion

The Ezra Klein Show

15,488 Listeners

The Consumer Finance Podcast by Chris Willis, Troutman Pepper Locke

The Consumer Finance Podcast

9 Listeners

RegFi Podcast by Orrick

RegFi Podcast

13 Listeners