Financial Services Sector Is Experiencing Surge In Effort To Obtain US Bank Charters Under ...

The financial services sector is experiencing a significant surge in efforts to obtain U.S. bank charters under President Donald Trump‘s administration. Industry players, particularly fintech companies and other financial firms, are moving quickly to capitalize on what many perceive as a more accommodating regulatory environment compared to the previous administration.

During the prior four years under President Biden, approvals for new bank charters—especially those involving fintech entities—essentially came to a halt.

Regulators adopted a highly cautious stance, often described as having “zero tolerance for risk” when it came to new bank formations.

This led to a virtual freeze on fintech-related charters, pushing many companies to explore alternative partnerships or delay their ambitions.

In contrast, the current Trump administration has signaled a shift toward looser oversight and greater openness to innovation in banking.

This change in tone has a flood of applications.

Reports indicate that more than 30 companies have submitted charter requests in various stages of review, with the Office of the Comptroller of the Currency ( OCC) alone seeing a notable increase—around 18 applications in 2025, matching or exceeding prior periods.

Preliminary approvals are now emerging on a near-weekly basis in some accounts, including conditional nods for de novo (new) charters and acquisitions.

A key player in this wave is Klaros Group, a specialized advisory and investment firm founded in 2019 by former regulators, including Michele Alt and her husband Konrad Alt.

The firm has positioned itself as a leading guide for companies navigating the complex charter process.

Klaros is currently advising at least a dozen financial firms pursuing these licenses, helping them through applications for various charter types—from full national bank charters to more specialized options like national trust charters (which focus on asset custody rather than deposits or lending), industrial loan companies (ILCs), or limited-purpose charters.

The appeal of a bank charter lies in the advantages it offers.

Obtaining one allows firms to operate with greater independence, access stable funding sources, expand product offerings, and reduce reliance on third-party banking partners.

For fintechs in particular, this represents a path to deeper integration into the traditional banking system while benefiting from federal oversight that can enhance credibility and competitiveness.

Examples of progress under the new administration include approvals for entities like SmartBiz (the first fintech to secure a charter via acquisition in this term) and conditional approvals for major players such as Nubank‘s U.S. expansion efforts.

Other firms, from payments companies to crypto-related entities, are also in the pipeline, reflecting broad interest across subsectors.

Industry professionals note that while the regulatory gates have reopened, the process remains rigorous and competitive, with application queues filling rapidly.

Firms are urged to prepare thoroughly to meet standards.

This “gold rush” could reshape the banking landscape, introducing more competition, spurring innovation, and potentially altering how financial services are delivered to consumers and businesses. As the administration continues to emphasize efficiency—such as adhering to review timelines—the momentum shows no signs of slowing, marking a pivotal moment for fintech and broader financial evolution in the US.