Evolving market dynamics and a pro-innovation regulatory shift under the Trump Administration are driving a surge in bank charter applications this year.
Many fintechs, once reluctant to subject their organizations to the scrutiny associated with the charter process, are re-evaluating how a charter can help strengthen their credibility and expand their reach among new customers or market segments.
“Fintechs are no longer viewing charters as a hurdle to overcome but a potential opportunity to embrace,” says Megan Moore, Global Public Affairs Partner at FGS Global. “They’re evaluating the entire process with fresh eyes.”
But even in the current climate, acquiring a bank charter is a challenging and complex undertaking.
Fintechs embarking on this journey need to build public trust and demonstrate that their entry into banking aligns with societal benefits, such as expanded financial opportunities for everyday Americans, innovation and job creation. This requires strategic stakeholder engagement – with policymakers, investors, media and other interested parties – that drives credibility and goodwill.
Here are six things fintechs exploring the charter process need to do to maximize their chances of a successful outcome:
Foster long-term relationships with regulators
Regulatory approval hinges on trust and transparency. Companies should prioritize early and open communication with regulators, clearly articulating their business model and compliance readiness. Employing former regulators or policy advisors can also serve as a strong signal of credibility and commitment to regulatory compliance.
Invest in strategic hiring and governance
Regulators will scrutinize your organization’s internal controls and governance structures. To instill confidence, companies should hire seasoned compliance and legal executives, establish independent risk and compliance committees and demonstrate robust operational maturity well before the application process begins.
Craft a compelling narrative
A successful application requires more than just meeting regulatory requirements. It’s about telling a story that resonates. Positioning your expansion as a public good and emphasizing consumer protection, financial access and responsible growth can help illustrate how your charter will improve outcomes for individuals and drive innovation in the financial sector. Case studies and data can showcase the tangible benefits a charter would bring to underserved communities.
Build a coalition of support
Regulatory decisions are often influenced by the broader environment — and having a bench of allies is key. Garnering support from industry associations, nonprofits and policy think tanks can amplify your case. Mobilize letters of support or public comments from advocacy groups to underscore the societal benefits of your charter.
Leverage media and public relations
Public perception matters. Thoughtful storytelling can turn skeptics into advocates and create positive momentum around your application. Launch earned media campaigns that align your regulatory approval with public benefit and proactively counter opposition narratives.
Be prepared for legislative advocacy
In some cases, outdated statutes may pose barriers to entry. Companies should be prepared to engage in legislative lobbying, whether through testimony, roundtables or white papers, to help modernize regulations. A proactive stance can position your organization as a thought leader and a partner in shaping the future of financial services.
The bottom line
Acquiring a bank charter is a complex, high-stakes process that extends far beyond regulatory checkboxes. It requires a strategic, holistic approach that integrates public affairs, governance and storytelling to build trust and demonstrate value to both regulators and the public.
At FGS Global, we specialize in helping organizations navigate these complexities, leveraging our expertise in stakeholder engagement, narrative development and regulatory strategy to position our clients for success. As the regulatory environment evolves, so too must the strategies to navigate it. The companies that succeed won’t just comply with regulations. They’ll lead with purpose, transparency and a vision for the greater good.