Fintech One•On•One

Michele Alt, Co-Founder of Klaros Group, on the new era for fintechs and bank charters

May 15, 2025

Michele Alt, Co-Founder of Klaros Group, draws on her 22 years of experience at the OCC to discuss the evolving landscape of bank charters for fintechs. She highlights a 'golden age' for fintechs seeking charters under the new administration. Michele explains two pathways for obtaining charters—acquisition vs. de novo formation—and shares insights on the unique appeal of ILCs in Utah. She also examines the rise of specialized charters like those for crypto companies, and the impact of major tech firms venturing into banking.

35:15

Episode guests

Michele Alt

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Episode notes

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Quick takeaways

The new administration's supportive stance on bank charters presents a golden opportunity for fintechs to pursue bank formations and acquisitions more efficiently.

Alternative charters like the ILC and MALPB are emerging as attractive options for fintechs seeking banking services with less regulatory burden than traditional banks.

Deep dives

Regulatory Landscape for Bank Charters

There has been a significant shift in the regulatory landscape surrounding bank charters, particularly with the new administration. Unlike the previous administration, where not a single fintech-oriented application was approved, the current focus is on facilitating new bank formations. Regulators are committed to processing applications more efficiently, indicating a growing receptivity to fintech initiatives. This change has led to an increase in interest from fintech companies in acquiring existing banks or pursuing de novo banking applications.

Intro

2min

Navigating Bank Charters in a Shifting Landscape

11min

Understanding Industrial Loan Companies

5min

Fintech's New Bank Charters

6min

Navigating Banking Innovation Amid Regulatory Challenges

9min

The Future of Fintech and Bank Charters

2min

When it comes to fintechs getting bank charters we are entering a golden age. With zero fintech-oriented bank applications approved in the Biden administration we already have several fintechs with shiny new bank charters just a few months into the new administration. So, if you are a fintech and are thinking about bank charters now is the time.

To break all this down, I was delighted to chat recently with Michele Alt, Co-Founder and Managing Director at Klaros Group. She was last on the show in 2021 and certainly a lot has changed since then. Michele takes us through the different types of charters and explains the different options for fintech companies seeking charters.

On this podcast you will learn:

The fundamental change in attitude for bank charters with the new administration in DC.
The two paths that fintechs can take to get a bank charter.
The pros and cons for each of these paths.
Michele’s thoughts on the SmartBiz acquisition of Centrust Bank.
Why she thinks the timelines for bank acquisitions will be shorter from now on.
The difference between an ILC charter and a regular bank charter.
Why most ILC banks are located in Utah.
Why some of the big names in fintech are applying for the MALPB charter in Georgia.
Why Wyoming created the SPDI charter.
How the Federal Reserve is reacting to this change in the new bank formation environment.
Why some of the crypto companies are looking for federal bank charters.
Michele’s perspective on the big tech companies getting bank charters.
What she would say if Amazon came calling looking to explore an ILC charter.
What the fintech banking landscape might look like at the end of the Trump administration.

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