The push for bank charters comes as an increasing number of Americans turn to online-only financial services during the coronavirus pandemic, boosting the fortunes of Varo and other digital financial companies. By pursuing national charters, fintech companies have signaled the pay-off from offering a wider range of banking services could offset the costs of regulatory oversight.
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Fintechs take on banks at their own game
“We see it as anti-competition,” said Lee Carter, chief executive of the US banking arm of Japanese ecommerce company Rakuten, which is seeking a banking license and has faced opposition from banking industry groups. “The regulators want innovation in banking and they want competition, and we are willing to come in the front door and be regulated.”
