Cutting Out the Middleman: The Surge in FinTech Applications to Charter Banks, Industrial Banks, National Trust Companies 

Applications for national banks, state-chartered institutions (including industrial banks in Utah and Nevada) and national trust companies have increased significantly, reflecting a shift in how nonbank financial firms are thinking about regulation, growth, and market access. In this program, we will take a fresh look at the forces behind this movement, what it signals for the broader financial services industry and the steps involved in obtaining such a charter.  

Our panel will explore:

1. The business, regulatory, strategic and political motivations prompting fintechs and other nonbanks to pursue bank charters
2. The advantages and tradeoffs associated with different charter options, including national trust banks and industrial banks in states such as Utah and Nevada
3. How access to Federal Reserve payment systems and the emergence of stablecoin-related activities are influencing charter decisions
4. The impact of charter choice and geographic footprint on issues such as interest rate exportation, federal preemption, and multi-state operations
5. Key considerations around conducting activities across state lines, including the complexities tied to branch and non-branch structures
6. Pros and cons of seeking de novo charter or acquiring existing bank
7. Why crypto-native businesses, including stablecoin issuers, digital asset exchanges, custody providers, and blockchain infrastructure firms, are increasingly pursuing bank and trust company charters, and how these structures can support activities such as custody, payments, and regulated digital asset issuance
8. Why lenders, buy-now, pay-later, and earned-wage access companies may want to consider organizing a bank
9. Why payment companies may want to consider organizing a bank or trust company
10. What firms should expect after entering the banking system, including supervision, examinations, governance expectations, and evolving regulatory priorities
11. Practical steps involved in going down this road 

The discussion will provide a practical, experience-based perspective on both the opportunities and the obligations that come with becoming a regulated banking organization or trust company, enabling participants to better evaluate whether a charter aligns with their business objectives.

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 

All speakers from Ballard Spahr are members of the Consumer Financial Services Group with extensive experience in bank regulatory and fintech matters.

We hope you will join us for this insightful discussion.