SmartBiz Loans Completes Acquisition of Centrust Bank With OCC Approval
SmartBiz Loans announced on March 17, 2025, the completion of its acquisition of United Community Bancshares and subsidiary Centrust Bank, which has been renamed SmartBiz Bank. The OCC conditionally approved SmartBiz's application to shift Centrust Bank's business model to fintech-style small business lending upon acquisition, with the Federal Reserve also granting regulatory approval. SmartBiz, which has operated as a digital marketplace for SBA and business loans since 2013, acquired a bank with $148 million in assets.
The deal enables SmartBiz to expand into banking services, including nationwide small business lending and planned national deposit products later in 2025. This represents a rare case of a fintech company directly acquiring a bank charter rather than partnering with a sponsor bank. Analysts view SmartBiz's acquisition as a potential signal for more fintech-bank tie-ups in 2025, driven by a more merger-friendly regulatory environment, rising investor optimism, and competitive pressures from nonbanks.
Sullivan & Cromwell advised SmartBiz on obtaining regulatory approval for the transaction.
- Signals a potential wave of fintech-bank acquisitions in 2025 as regulatory environment becomes more merger-friendly under new administration
- Demonstrates an alternative to the BaaS sponsor bank model where fintechs can own their own charter, reducing dependency on banking partners
- May intensify competitive pressure on traditional BaaS sponsor banks as more fintechs seek direct charter ownership