Cutting Out the Middleman: Why Fintechs, Crypto Firms, and Payments Companies Are Seeking Their Own Bank Charters - Part 1

Subscribe and Listen

At a May 19, 2026 Ballard Spahr webinar, “Cutting Out the Middleman: The Surge in FinTech Applications to Charter Banks, Industrial Banks and National Trust Companies,” a distinguished panel of banking, fintech, crypto, and consumer financial services professionals explored one of the most important developments currently reshaping the financial services industry: the growing movement by fintech companies, payments firms, lenders, and crypto-native businesses to obtain their own banking charters rather than relying on traditional bank partnerships.

The message from the panel was clear: we are witnessing a significant shift in how nonbank financial services companies are thinking about regulation, growth, and market access.

Speakers: 

• Moderator: Alan Kaplinsky, senior counsel; founder and former leader of Consumer Financial Services Group, Ballard Spahr  
• Guest: Lee Reiners, Lecturing Fellow, Duke Financial Economics Center; founder and editor-at-large of The FinReg Blog; founder and host, The FinReg Pod; co-host, Coffee & Crypto with Lee and Jimmie (a podcast that covers the latest developments in cryptocurrency); co-organizer of Digital Assets at Duke (annual conference about crypto assets space)
• Scott Coleman, partner, Ballard Spahr 
• Joseph Schuster, partner, Ballard Spahr 
• Beau Hurtig, counsel, Ballard Spahr 
• Adam Maarec, counsel, Ballard Spahr 

Key Takeaways

1. A significant shift is underway. Fintechs increasingly want to internalize the benefits of banking rather than rely on partnerships.
2. There is no one-size-fits-all charter. National banks, state banks, industrial banks, and national trust banks each serve different strategic objectives.
3. The current environment appears unusually favorable. Regulators are showing greater openness to nontraditional applicants than at any point in recent memory.
4. The trend extends well beyond crypto. Payments companies, lenders, fintech platforms, and other financial services providers are all exploring charter opportunities.
5. Becoming a bank is a long-term commitment. The benefits are substantial, but so are the regulatory obligations.

Part 2 of this webinar will be released next Thursday, July 2^nd.

Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

A transcript of the recording will be available soon.

Copyright © 2026 by Ballard Spahr LLP.
www.ballardspahr.com
(No claim to original U.S. government material.)

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.

This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.