Banking, Banking as a service
Affirm’s move to become a bank signals a reconfiguration for the BaaS industry and beyond
- Affirm and major fintechs are applying for bank charters to eliminate sponsor dependencies and improve economics.
- The shift from fintech-bank partnerships to direct competition calls into question legacy institutions' longtime market dominance.
It’s an interesting time for fintechs, despite regulatory uncertainties like the open banking ruling, that call infrastructural configurations into question. Fintechs like Affirm are also eyeing some greenfield opportunities like becoming a bank.
The charter rush
Getting a US bank charter isn’t easy. But the rising number of charter applications indicates that multiple major players in the industry perceive Trump’s second term in the White House as the right time to push for the elusive bank status.
Charter application activity has surged notably under the current administration. Just the first eight months of 2025 produced 21 applications – more than twice the total from the entirety of 2024, which saw only 8.
