WASHINGTON— Credit card startup Mission Lane has applied to become a U.S. bank, seeking approval from federal regulators for a national bank charter that would let it move deeper into the regulated banking system, according to PYMNTS, which cited Bloomberg News and the company’s banking application.
If approved by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., Mission Lane said the proposed bank would focus only on credit card operations and offer an optional credit-protection service, but would not take deposits or make commercial loans. In its application, the company said it is targeting what it described as roughly 70 million Americans underserved by traditional financial institutions who need more affordable access to credit, PYMNTS reported.
PYMNTS said the move places Mission Lane among a growing group of fintechs and non-traditional financial firms pursuing bank charters as regulators appear more open to new formations. The outlet noted that Bank Policy Institute has weighed potential legal action over the OCC’s willingness to approve charters for crypto, payments and fintech firms, while also arguing in earlier reporting that regulated infrastructure providers may be becoming the most valuable layer of finance.
PYMNTS has also framed the shift as part of a broader rethink among fintechs that historically relied on partner banks for payments access, deposit insurance and compliance infrastructure rather than becoming banks themselves. That model offered speed but also exposed firms to sponsor-bank risk, regulatory changes and growing scrutiny of banking-as-a-service arrangements, PYMNTS said, adding that de novo charters can support very different business models depending on the type of charter pursued.