Affirm Joins Fintechs Seeking Bank Charters Under Trump

Affirm Holdings Inc. has submitted applications to the Nevada Financial Institutions Division and the Federal Deposit Insurance Corp. for a limited bank charter, aiming to expand its financial technology services in the United States. The company, based in San Francisco, said this move will help it introduce more products for consumers and merchants according to Bloomberg.

The application is part of a growing trend among fintech companies to seek bank charters under the Trump administration. Firms such as Block Inc. and PayPal Holdings Inc. have also submitted similar requests, with some already receiving approval according to Bloomberg.

Five cryptocurrency companies, including Circle Internet Group Inc. and Ripple, were granted trust bank charters in December, signaling a regulatory shift that could support innovation in the financial sector according to Bloomberg.

Why the Move Happened

Affirm’s CEO, Max Levchin, said a bank subsidiary would help the company offer more comprehensive financial products and strengthen its platform. The company’s current strategy includes partnerships with banks, but a full charter would allow it to expand its reach and capabilities according to Bloomberg.

John Marion, a former executive at JPMorgan Chase & Co. and MVB Financial Corp., will lead Affirm Bank if the charter is approved. His experience in traditional finance is seen as a strategic move to align with regulatory standards according to Bloomberg.

How Markets Responded

The broader fintech industry has reacted positively to the regulatory changes under the Trump administration. Citigroup analysts said that the focus on affordability in Washington could give fintechs an edge over traditional lenders according to Investing.com.

Affirm and other fintechs, such as SoFi and Klarna, are seen as benefiting from policies that emphasize lower-cost lending and support for small businesses. The Nasdaq Composite gained 20.4% in 2025, while SoFi and Affirm rose by 70% and 22%, respectively according to Investing.com.

What Analysts Are Watching

Affirm is also enhancing its credit underwriting system by incorporating real-time financial data. The updated system allows for more accurate assessments of users’ financial health and improves the responsiveness of credit decisions according to CrowdFund Insider.

This innovation could help Affirm serve more consumers, especially those with thin credit files or fluctuating income. Early results show that users who received increased credit limits saw an average increase of 12% according to CrowdFund Insider.

The move reflects a broader shift in the fintech industry, where companies are building tools that are so integral they are being absorbed into the traditional financial system. For example, Capital One’s $5.15 billion acquisition of Brex is seen as a sign that the most valuable fintechs are becoming part of the larger financial core according to Forbes.

Traditional banks are also adapting to the changing landscape. Simmons First National Corporation reported a fourth-quarter EPS of $0.54, showing resilience in the face of industry-wide changes according to PR Newswire.

As the Trump administration continues to shape financial policy, fintechs and traditional lenders are both adjusting to a more competitive and regulated environment. Analysts are watching how these changes will affect the balance of power and innovation in the financial sector according to Investing.com.