From Pymnts · PYMNTS · · 1m 30s
Avant seeks national bank charter to serve customers directly
The fintech lender is applying to become a regulated bank, joining a wave of digital finance firms moving in-house.
In brief
The fintech lender is applying to become a regulated bank, joining a wave of digital finance firms moving in-house. Avant's national bank charter application would let it offer banking products directly to underserved Americans while reducing costs and operating under a single regulatory framework. Originally reported…
Avant files for national bank charter
The fintech company applied to the Office of the Comptroller of the Currency and FDIC to establish Avant Bank, N.A., joining other financial services firms seeking regulated banking status.
What Avant does today
The company uses data and machine learning to offer credit cards, personal loans, financial management tools, and other products to over 100 million Americans overlooked by traditional banks.
Why the charter matters
A national bank charter would let Avant serve customers directly, reduce its cost of funds, offer products under one regulatory framework, and build services end-to-end with greater control.
“A national bank charter would further our mission, help reduce our cost of funds and enable us to offer products under one regulatory framework.”
Leadership transition if approved
Charles Whittaker, Avant's Chief Business Officer, would become CEO of Avant Bank, N.A. if the application is approved by regulators.
Part of a broader fintech trend
Avant's move reflects a wave of fintech and digital asset companies pursuing bank charters. The OCC made nine significant charter determinations in 90 days, including six preliminary conditional approvals.
Avant's track record with securitization
Since 2012, Avant has completed 23 personal loan securitizations, including a $200 million deal in February that provided over $500 million in financing capacity, demonstrating its scale and financial sophistication.
In short
Avant's national bank charter application would let it offer banking products directly to underserved Americans while reducing costs and operating under a single regulatory framework.
