FDIC Signals Openness to Fintech Charter Applications Under Acting Chair Hill

In April 2025, the FDIC under Acting Chairman Travis Hill publicly outlined policy priorities that signal a more accommodating stance toward fintechs seeking banking charters and deposit insurance. The priorities include greater receptivity to industrial bank charter applications and a loosening of restrictions on crypto-related activities within the banking sector. The FDIC also removed certain roadblocks that had previously discouraged banks from engaging with digital asset firms.

These developments are significant for the BaaS ecosystem, as FDIC deposit insurance is a critical requirement for fintechs that want to offer banking products directly or serve as partner banks. The policy shift comes alongside growing state-level charter activity, such as Georgia's MALPB framework, and could encourage more fintechs to pursue de novo charters rather than relying on bank partnerships. Analysts note that acquisitions of small banks remain a faster alternative to de novo applications, but the regulatory thaw may narrow that gap over time.