Avant files for national bank charter

PYMNTS reported that Avant filed an application on Friday, Sept. 18, to establish Avant Bank, N.A. The fintech company submitted the request to the OCC and FDIC for a national bank charter.

The proposed charter would allow Avant to serve customers directly through an integrated digital banking platform, according to the company’s press release. Al Goldstein, Avant’s co-founder and CEO, said the firm has focused on a customer base of over 100 million people left out of the current financial system since its founding in 2012.

“A national bank charter would further our mission, help reduce our cost of funds and enable us to offer products under one regulatory framework,” Goldstein said.

If approved, Chief Business Officer Charles Whittaker would become the CEO of the new bank entity. Whittaker stated that a national bank charter would enable the company to build and service products end-to-end.

The application comes as the OCC issued nine significant charter determinations in the 90 days ended Aug. 24. Those determinations included six preliminary conditional approvals. Avant also closed a $200 million personal loan securitization in February, which provided financing capacity exceeding $500 million across the 24-month period.