Jiko Becomes First Fintech to Purchase a US-Regulated Bank

On September 4, 2020, fintech startup Jiko completed its acquisition of Mid-Central Federal Savings Bank, a Minnesota-based community bank, marking the first time a fintech company had purchased a US-regulated bank. The acquisition received regulatory approvals from both the Office of the Comptroller of the Currency and the Federal Reserve Bank of San Francisco. By acquiring an existing bank rather than pursuing a de novo charter application, Jiko secured national charter status through a faster pathway.

Acting OCC Comptroller Brian Brooks publicly praised the deal as evidence of growing fintech maturity and its readiness to operate within the regulated banking framework. The acquisition enabled Jiko to expand its services and operate as a fully chartered national bank, holding deposits and offering FDIC-insured products directly. The deal represented an alternative model for fintechs seeking bank charter status — acquisition rather than the lengthy de novo application process that Varo had endured.

This approach was seen as potentially replicable by other well-capitalized fintechs looking to move beyond BaaS partnerships and gain direct banking capabilities.