The banks that power your favorite fintechs
Original tweet thread:
Full post:
Fintechs get a ton of coverage, but did you know that behind every fintech challenger is an actual bank that powers it?
Fintechs use these banks to "rent-a-charter" to access the regulated financial system and park member deposits.
But who are the banks behind the fintechs?
I went down another rabbit hole through Ts&Cs and fine print to find the sponsor banks behind fintechs.
Turns out who you're banking on says a lot about what kind of fintech you are.
Push off your Sunday Scaries with this nerdy fintech 🧵 and read on.
First up: @thebancorp - the OG sponsor bank.
Young for a bank but they made white label banking a thing and are top 10 in PV.
You bank on Bancorp b/c you started early or you're migrating and need it done right.
Notables - @PayPal, @Venmo, @Chime, @Oxygenbanking, @NorthOneApp
Next up: @GreenDotBank
They'd been dominating prepaid but got into BaaS with a more full-stack platform than Bancorp.
You bank on GreenDot b/c you're a large retailer or non-bank fintech who wants banking but doesn't know how.
Notables - @Walmart, @Uber, @Wealthfront, @Stash
Onward to Sutton Bank (too cool for Twitter) and they're a gem.
This Ohio-based regional bank is all about "old-fashioned innovation" (incl. their website).
You bank on Sutton Bank b/c you already have investing and want to add banking.
Notables - @CashApp, @RobinhoodApp
Here's a regional bank of note -@getevolved1925 (evolved enough to get a Twitter).
This Tennessee-based bank has gotten meta with their focus.
You bank your business on Evolve Bank if you've got a business bank.
Notables - @RelayFinancial, @BankMercury, @rhobusiness
Another regional bank that puts community right into the name @BankCcbx out of Washington.
You bank on CCB because you're a vertical fintech front and center and community is part of your focus.
Notables - @Aspiration, @bankgreenwood, @bankwithfair
@BlueRidgeBank in VA is a bank w/ a startup partner.
You bank on Blue Ridge Bank b/c you use @unit_co_ BaaS for your embedded finance play.
Notables - @wethosco, @hellomeetlance, @movesfinance
and...
You heard it here first (aka unconfirmed speculation) @Angellist Stack
And finally the long tail:
@MyMetaBank (SD) is cool with crypto: @coinbase @MoneyLion
@BankWithChoice (ND) likes influencers: @current @hellofromLili
CFSB (NY) is kid-friendly: @gohenry @GreenlightCard
@LendingClubBank (MA) for the new new: @bankonfound @AskZetaApp
Wow - who knew this 🧵 would be this popular?
More over-engineered cheeky threads on fintech nerdery coming soon!
For now, by popular demand, let me add to this list of sponsor banks for challenger bank fintechs w/ the sponsor banks behind fintech lenders.
Read on!
Before we get into the banks behind the fintechs, you'll notice something in common about nearly all of these sponsor banks.
They're almost all from Utah. Maybe there's something in that salt lake water? Def worth a "deep dive" another time.
Onwards to our first bank.
If Bancorp was the OG for challenger banks, WebBank out of Utah is the OG for fintech lenders.
They started it all w/ LendingClub and never stopped.
You bank on Web if you're a marketplace or eComm platform.
Notables - @PayPal WC, @ToastTab, @ProsperLoans, @Klarna, @Shopify WC
Despite their name, @CelticBank is right around the corner in Utah, and they mean business.
You bank on Celtic b/c you offer financing, corporate cards and working capital to SMBs.
Notables -@Square Capital, @bluevine @OnDeckCapital, @tryramp, @stripe Corporate Card
And let's not forget First Electronic Bank (unclear if actually 1st), also out of Utah.
They're a small "fry" vs other Utah names but have potential.
You bank on FEB b/c you offer consumer credit, potentially thru retail.
Notables - @fryselectronics, @Cardless, @Opp_Fi
And to round it out, @crossriverbank is new on the scene age-wise and location-wise, started in 2008 and from NJ, but they've been busy.
You bank with CRB if positivity is in your name and personal loans are your game.
Notables - @Upstart, @UpgradeCredit, @Affirm, @RocketLoans