Robinhood Withdraws OCC National Bank Charter Application

On November 27, 2019, US fintech Robinhood withdrew its application for a national bank charter from the Office of the Comptroller of the Currency (OCC), shortly after filing. The withdrawal came amid significant regulatory hurdles that fintechs face when seeking full banking status in the United States. Robinhood had sought the charter to offer banking services directly rather than relying on partner banks.

The decision reflected broader industry challenges, as the OCC's fintech charter program faced legal opposition from state regulators and industry groups. Without a bank charter, Robinhood would continue to depend on banking-as-a-service relationships and partner banks for deposit and lending products. The withdrawal was a notable setback for the fintech-to-bank charter movement and reinforced the importance of BaaS partnerships as an alternative path for fintechs to offer financial products.

OCC activities in 2019 had focused primarily on innovation pilots and interpretive letters rather than granting new charters to fintechs.