SAN FRANCISCO — Fintech firm Mercury said it has submitted an application to the Office of the Comptroller of the Currency for a national bank charter and applied for federal deposit insurance with the Federal Deposit Insurance Corporation, marking a major step in its push to become a regulated bank.
The filings begin a formal regulatory review that, if approved, would allow Mercury to operate as an FDIC-insured national bank. The company said customers will see no immediate changes and that it will continue operating through partner banks during the approval process.
Founded in 2017, Mercury provides banking and financial software to startups and small businesses. The company said it serves more than 200,000 customers, generates about $650 million in annualized revenue, and has been profitable on a GAAP basis for three years. Mercury estimates that roughly one in three U.S. startups uses its platform.
The Long-Term Strategy
Chief Executive Immad Akhund said a charter would support the company’s long-term strategy of pairing software-driven banking tools with the stability of direct regulatory oversight.
“Once we receive regulatory approval, a charter will let us deliver greater stability, long-term confidence, and trust,” Akhund said in a statement.
Mercury also named Jon Auxier as chief banking officer and proposed CEO and president of the planned bank, subject to regulatory approval. Auxier previously served as chief financial officer of SoFi Bank and held senior roles at Goldman Sachs and Green Dot.
Growing Role of Fintechs
Board member Tim Mayopoulos, former CEO of Fannie Mae, said the move reflects the growing role of fintechs in small-business banking.
As part of the process, Mercury said its parent company will apply to the Federal Reserve System to become a financial holding company. If approved, Mercury Bank, N.A., would be headquartered in Utah.
