What do you think about fintech companies buying small banks? Do you think this possible purchase could start a trend?
Morgan Stanley and eTrade on the same post, showing the wedding on Blind. Fintechs are regulated by their loan buyers, since an investor will do a strong due diligence before starting a business relationship. Its not impossible a trend of purchase starts since the charter application is such a long process otherwise.
Varo got a bank charter and it took 3 years. LC thinks this acq is a more superior approach. Just need approval to close the deal
Really interested in seeing what they will do in the long term. What will be their strategy ?
Fin tech is afraid of acquiring bank charters. Tech is basically unsupervised. It’s very difficult culturally to operate for tech under regulation. That’s why I don’t see this happening yet.