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Fintech companies are applying to become banks. Here's what it takes to become one
Confirmed
In Short: Fintech companies are increasingly applying for bank charters, driven by a favorable regulatory environment, according to a recent report.
According to a 2026 fintech report from Pitchbook, fintechs and crypto firms have been applying for charters within the last year due to a 'now-or-never moment' of regulatory receptivity under the current administration. So far, over 30 neobanks, digital asset companies, lenders, investment firms, and payment providers have undergone the bank charter process through federal regulators this year.
The Office of the Comptroller of the Currency (OCC) has conditionally approved a de novo bank charter for U.K.-based challenger bank Revolut, but it held back four of the products the British fintech wants to sell in the States. The OCC said the company would need additional approval to offer four services: leveraged currency trading, foreign exchange forwards, merchant acquiring, and correspondent banking for unaffiliated foreign banks.
The Unique Identification Authority of India (UIDAI) has launched new Aadhaar face authentication tools that will allow banks, fintech companies, and other financial sector players to integrate face-based Aadhaar authentication directly into their mobile applications. This initiative, jointly launched by Reserve Bank of India Governor Sanjay Malhotra and Sebi Chairman Tuhin Kanta Pandey at the Global Fintech Fest, aims to make digital onboarding simpler by eliminating the need to switch between multiple applications while completing Aadhaar-based face authentication.
UIDAI’s Aadhaar Face Authentication system, launched in 2021, has so far processed more than 500 crore transactions and has been adopted by nearly 200 entities, including banks, non-banking financial companies, government departments, telecom operators, and brokerage firms. The new SDK and sandbox, launched at the Global Fintech Fest 2026, address a long-standing demand from the banking and fintech ecosystem for a more seamless way to onboard and authenticate customers within their own applications.
What's confirmed
- According to a 2026 fintech report from Pitchbook, fintechs and crypto firms have been applying for charters within the last year due to a 'now-or-never moment' of regulatory receptivity under the current administration. So far, over 30 neobanks, digital asset companies, lenders, investment firms, and payment providers have undergone the bank charter process through federal regulators this year.
- The Office of the Comptroller of the Currency (OCC) has conditionally approved a de novo bank charter for U.K.-based challenger bank Revolut, but it held back four of the products the British fintech wants to sell in the States. The OCC said the company would need additional approval to offer four services: leveraged currency trading, foreign exchange forwards, merchant acquiring, and correspondent banking for unaffiliated foreign banks.
- The Unique Identification Authority of India (UIDAI) has launched new Aadhaar face authentication tools that will allow banks, fintech companies, and other financial sector players to integrate face-based Aadhaar authentication directly into their mobile applications. This initiative, jointly launched by Reserve Bank of India Governor Sanjay Malhotra and Sebi Chairman Tuhin Kanta Pandey at the Global Fintech Fest, aims to make digital onboarding simpler by eliminating the need to switch between multiple applications while completing Aadhaar-based face authentication.
- UIDAI’s Aadhaar Face Authentication system, launched in 2021, has so far processed more than 500 crore transactions and has been adopted by nearly 200 entities, including banks, non-banking financial companies, government departments, telecom operators, and brokerage firms. The new SDK and sandbox, launched at the Global Fintech Fest 2026, address a long-standing demand from the banking and fintech ecosystem for a more seamless way to onboard and authenticate customers within their own applications.
What's still developing
- The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues.
- The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc.
- The pilot has already seen three companies issue tokenised bonds worth a combined Rs 1,025 crore.
- UIDAI Chairman Neelkanth Mishra said the new SDK will allow partner banks and businesses to run Aadhaar authentication locally on their servers, rather than routing requests through UIDAI’s central systems.