Cutting Out the Middleman: Why Fintechs, Crypto Firms, and Payments Companies Are Seeking Their Own Bank Charters - Part 2

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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 experts 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.

The podcast we are releasing today is part 2 of this series. We recommend that you listen to part 1 before listening to part 2.  

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.

For firms willing to embrace that commitment, obtaining a charter may provide transformative advantages. But as our panel repeatedly emphasized, success requires careful planning, significant capital, experienced management, and a clear understanding that regulatory scrutiny continues long after the charter is approved.

A transcript of the recording will be available soon.

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