The U.S. Office of the Comptroller of the Currency (OCC) has granted conditional approval for fintech lender SmartBiz Loans to operate under a national bank charter—marking a significant milestone in the integration of fintech capabilities and traditional banking infrastructure. The OCC’s decision signals growing official backing for financial innovation that combines nimble lending models with federal oversight and deposit insurance.
SmartBiz, known for its cloud-based small-business lending platform, plans to leverage the charter to expand access to capital across the U.S. by offering federally insured deposit accounts and tiered lending programs directly on its platform. The bank-intended status will also permit SmartBiz to use lower-cost funding sources, such as customer deposits, reducing reliance on capital markets—potentially translating to more favorable loan pricing.
According to experts, this move aligns with a broader trend toward “banking-as-a-service” models. By holding a charter, SmartBiz can embed banking features in its API suite, opening doors for third-party fintechs to offer deposit and payment services seamlessly. Analysts note this could drive further competition among neobanks and push legacy banks to form similar partnerships.
However, there are caveats: SmartBiz still needs to finalize its charter conditions, secure Federal Deposit Insurance Corporation (FDIC) approval, and meet capital adequacy requirements before full operations. Critics caution that blending fintech agility with banking responsibility introduces new regulatory and operational challenges—such as compliance infrastructure and system security.
Why It Matters:
- Sets a precedent for other fintechs to pursue hybrid fintech-bank models
- May accelerate embedded finance adoption through charter-held APIs
- Presents regulatory blueprint—and cautionary lessons—for future charter-seeking fintechs
 has granted conditional approval for fintech lender SmartBiz Loans to operate under a national bank charter.){kind=link}