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by bingdig 1798 days ago
2021 is a great time to own a small regional / community bank. All the mature FinTech companies are trying to buy a bank to expedite the cumbersome bank chartering process (+ mortgage origination and servicing companies are too)
2 comments
hestefisk 1798 days ago
Indeed. And a good time to have a banking as a service business. Have a look at Cross River Bank. They have grown their balance sheet 3x in the last two years. It’s not just US though. In Southeast Asia same trend; big tech platforms like Grab and Shopee are buying small bank license holders on the cheap to start taking deposits and build their ecosystem on top.
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zonethundery 1798 days ago
sure, they are, but the bank holding company act (BHCA) restrictions on ownership/source of strength requirements are a kick in the head. You can go the Greendot route (just up and convert yourself to a bank holding company), Varo route (same but get a fresh OCC charter), or take your chances with an ILC application.
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