Thread Bank
US · Rogersville, Tennessee · FDIC, TN Dept. of Financial Institutions
Thread Bank is a Bank based in US (Rogersville, Tennessee), regulated by FDIC, TN Dept. of Financial Institutions. The institution's BaaS program is currently under regulatory scrutiny, launched in 2022.
Thread Bank supports the following products and services: Accounts, Lending, Cards, Payments. The bank serves customers across US.
Notable fintech partners include Unit.
- Products Supported
- AccountsLendingCardsPayments
- Geographies Served
- US
- Charter / Regulator
- FDIC, TN Dept. of Financial Institutions
- API Standards
- REST API
- Minimum Deal Size
- Not publicly disclosed
- Year Program Launched
- 2022
Unit
FDIC consent order (May 2024) — explicitly references BaaS and Loan-as-a-Service programs; requires enhanced third-party risk management and exit planning for fintech partners
Formerly Civis Bank. ~$722M in assets.
WARNING: Active FDIC consent order since May 2024. CEO states bank is 'more committed than ever' to BaaS despite order.
Thread Bank Raises $30.5M to Scale Embedded Banking and Digital Branch Model
Thread Bank closed a $30.5 million funding round to accelerate its embedded banking and digital branch model. The bank now manages over $2 billion in partner deposits and achieved more than threefold growth in embedded deposits between January 2024 and October 2025. The raise underscores investor confidence in the sponsor bank model despite recent regulatory scrutiny across the sector.
Thread Bank Selects Finxact from Fiserv for Embedded Banking
Thread Bank chose Finxact from Fiserv as its core banking platform to power embedded banking strategies for community banks. The API-first platform will be integrated with Infinant's Interlace Platform for a modern embedded and core banking experience alongside payment processing.
FDIC Issues Consent Order Against Thread Bank Over BaaS Oversight Failures
The FDIC issued a consent order against Thread Bank, a BaaS sponsor bank, for inadequate oversight of its fintech partners in embedded finance. The order, issued in May 2024 and made public in July, requires enhanced risk assessments and board-approved thresholds for fintech partnerships. This was part of a broader wave of regulatory actions targeting over 25% of FDIC-supervised BaaS banks in 2024.
Unit Partners with Thread Bank for Compliance-Focused BaaS
Unit announced a partnership with Thread Bank to deliver compliance-focused Banking-as-a-Service for fintechs. Unit provides technology infrastructure, project management, and regulatory oversight for products including banking and lending. The partnership emphasizes compliance as a core differentiator in the BaaS market.
Thread Bank Joins Newly Launched BaaS Association
Thread Bank announced it joined the newly launched Bankers Helping Bankers BaaS Association in mid-January 2023. The membership signals Thread Bank's commitment to the banking-as-a-service model. The association aims to bring together banks active in BaaS to collaborate on industry standards.
Unit Launches Embedded Lending Program with Thread Bank
Unit launched its embedded lending program, including Charge Card issuing, through a partnership with Thread Bank. This expanded Unit's embedded finance platform into lending, enabling companies to offer customers access to capital. The launch was part of Unit's multi-bank strategy, which now includes four bank partners.
Unit Partners with Thread Bank for Embedded Banking Services
BaaS startup Unit partnered with Thread Bank to embed banking services including accounts, cards, payments, and lending. The deal is part of Unit's multi-bank approach and serves clients such as AngelList and HoneyBook. Thread Bank, based in Tennessee, adds another sponsor bank option to Unit's infrastructure.