Brex Applies for Industrial Loan Company Charter with FDIC and Utah

In February 2021, San Francisco-based corporate credit card provider Brex applied for an Industrial Loan Company (ILC) charter with the Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions. The move came as ILC charters experienced renewed interest following the landmark March 2020 approvals of Square and Nelnet, which were the first such approvals in over a decade. Brex also tapped a former Silicon Valley Bank executive as CEO of the proposed Brex Bank entity.

If approved, the ILC charter would allow Brex to accept deposits and lend directly, reducing its dependence on partner banks for its corporate credit card and financial products. This application represents a significant strategic shift for a major fintech, moving from a BaaS-reliant model to direct banking. The development highlights a broader trend of maturing fintechs seeking their own bank charters to gain greater control over their financial infrastructure, which could reshape the BaaS landscape by reducing the number of high-profile fintechs relying on third-party banking partners.