NORTHBROOK, Ill.–In another sign of the changing landscape credit unions face, a fintech has been given conditional approval to complete its acquisition of an Illinois bank and then change the bank’s business model. 

The Office of the Comptroller of the Currency (OCC) said it has conditionally approved the acquisition of CenTrust Bank, N.A., of Northbrook, Ill.. which has changed its name to SmartBiz Bank, N.A. It has applied to change its business model to conduct small business lending activities on a nationwide basis,  the OCC reported.

According to the OCC, the application “is part of a larger transaction in which Billfloat, Inc., a Delaware corporation doing business as SmartBiz Loans (SmartBiz), seeks to become a bank holding company by indirectly acquiring CenTrust.”

‘Innovations in Banking’

In a statement, Acting Comptroller of the Currency Rodney Hood said the conditional approval shows how the agency supports regulations for “innovations in banking.”

“A safe, sound and fair fintech business model has a place in today’s federal banking system,” Hood said.

In his prior terms as a member of the NCUA board, including as chairman, Hood often championed greater fintech partnerships for credit unions.