The third fintech company to vie for a bank charter with both the Federal Deposit Insurance Corp. (FDIC) and Utah regulators in little more than a year also recently became the third to encounter expressed opposition from community bankers.
Weeks after Nelnet, a Nebraska-based student lender, made its bid to form a Utah-chartered industrial loan corporation (ILC), the Independent Community Bankers of America (ICBA) urged the FDIC to deny the company’s request and impose a two-year moratorium on future ILC applications, as it did in response to SoFi’s application in June 2017 and Square’s that September.
Find out more details about why ICBA opposes ILC charters.