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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
- A significant shift is underway. Fintechs increasingly want to internalize the benefits of banking rather than rely on partnerships.
- There is no one-size-fits-all charter. National banks, state banks, industrial banks, and national trust banks each serve different strategic objectives.
- The current environment appears unusually favorable. Regulators are showing greater openness to nontraditional applicants than at any point in recent memory.
- The trend extends well beyond crypto. Payments companies, lenders, fintech platforms, and other financial services providers are all exploring charter opportunities.
- 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.
To listen to this episode, click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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