Episode Details

In this episode we examine the challenges of starting a De Novo Bank, the surge in bank charters and what type of companies are applying for them, and should a bank consider changing its charter to fit its future strategy. A De Novo Bank must raise a significant amount of money to get started. They must also consider market fit, capital and investor base, strategic differentiation, and execution capacity. What type of companies are applying for bank charters? Large corporations / auto companies (Ford & GM), fintech and payment platforms (PayPal & Revolut), digital assets and crypto firms (World Liberty Financial & Kraken), and niche digital banks (Erebor). With this changing landscape should your bank consider changing its existing charter? What if you plan to grow significantly through M&A or expansion into new markets? What if you want to change regulators? This episode examined two blog posts from PCBB and an article from Bank Director. Links to the two blog posts and the article are included below.

Link: Nonbank Charter Applications Are Surging — What You Need To Know

Link: New Community Banks: When De Novo Formation Makes Sense

Link: Does Your Bank's Charter Align With Its Strategy? | Bank Director