Avant has officially submitted an application for a national bank charter to the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. The company currently utilizes machine learning and data analytics to provide personal loans, credit cards, and financial management tools.
CEO Al Goldstein stated that the charter would allow the firm to reduce its cost of funds and consolidate its offerings under a single regulatory framework. If the application is approved, Chief Business Officer Charles Whittaker is set to lead the new entity, Avant Bank, N.A., as its CEO.
The fintech firm, founded in 2012, targets over 100 million Americans who are underserved by traditional financial institutions. The company aims to leverage the charter to build and service its products end-to-end through an integrated digital banking platform.
This move follows a broader industry trend where numerous financial services firms are seeking bank charters. Recent data shows that the OCC made nine significant charter determinations within a 90-day period ending August 24, including six preliminary conditional approvals.
In February, Avant closed a $200 million personal loan securitization, which is expected to provide over $500 million in financing capacity over a 24-month period. This transaction marked the company's 23rd personal loan securitization since its inception.
