Fintech Takes

This week on Bank Nerd Corner, Kiah and Alex welcome a special guest (arguably the MOST special?), former Acting Comptroller of the Currency, Michael Hsu. Together, they explore the fascinating crossroads where financial tradition, innovation, and regulation collide. From the challenges of de novo bank formation post-Great Recession to the rise of Banking as a Service (BaaS), we unpack the risks and rewards of each path. And we’re turning it into a fun,  “Would You Rather” game, tackling burning questions like: * Would you rather see a banking system with higher risk tolerance for new bank formations OR fintechs operating through BaaS? * Would you prefer robust fintech industry standards OR direct regulatory oversight of fintechs? * Can fintech thrive without bank charters? Plus, we tackle the core issue of fintech regulation: should we lean on industry standards, or is direct regulatory oversight the only way to protect consumers and avoid future crises?  Tune in for a thought-provoking “Would you Rather?” roulette and a super fun dive into the future of financial services—straight from one of the industry's key players. Roll the dice, hit the gas, and let’s see where the game takes us! Sign up for Alex’s Fintech Takes newsletter for the latest insightful analysis on fintech trends, along with a heaping pile of pop culture references and copious footnotes. Every Monday and Thursday: https://workweek.com/brand/fintech-takes/https://workweek.com/brand/fintech-takes/ [https://workweek.com/brand/fintech-takes/] And for more exclusive insider content, don’t forget to check out my https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videosYouTube page [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos]. Read more about Michael here: https://www.occ.gov/about/who-we-are/history/previous-comptrollers/previous-acting-comptrollers/bio-michael-hsu.html [https://www.occ.gov/about/who-we-are/history/previous-comptrollers/previous-acting-comptrollers/bio-michael-hsu.html] Follow Kiah: LinkedIn: https://www.linkedin.com/in/khaslett/https://www.linkedin.com/in/khaslett/ [https://www.linkedin.com/in/khaslett/] Twitter: https://twitter.com/khasletthttps://twitter.com/khaslett [https://twitter.com/khaslett]   Follow Alex:  YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videoshttps://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos] LinkedIn: https://www.linkedin.com/in/alexhjohnsonhttps://www.linkedin.com/in/alexhjohnson [https://www.linkedin.com/in/alexhjohnson] Twitter: https://www.twitter.com/AlexH_Johnsonhttps://www.twitter.com/AlexH_Johnson [https://www.twitter.com/AlexH_Johnson]

Welcome back to the Fintech Takes podcast. I’m Alex Johnson, and as always, I’m joined by my partner-in-crime, Jason Mikula. Today, we’re unpacking the chaos around regulatory shifts, fintech's shifting landscape, and the not-so-rosy reality of BNPL. First up, we're diving into the latest news coming from D.C. The Trump administration is considering consolidating bank supervision under the OCC, with reports of employee transfers from the FDIC and CFPB in the works. The possible gutting of agencies and the shifting regulatory approach isn’t exactly a surprise, but we’re seeing this transition go from theoretical to action. What’s at stake for banks and fintechs? Next, we dive into Varo’s challenges as the first fintech to snag a de novo bank charter during fintech 1.0’s big promises. Once a leader, Varo is now facing financial losses and a shrinking customer base, while rivals like Chime scale quickly. Varo’s struggles highlight the tension between building responsible products for underserved communities and navigating complex regulatory oversight. Its de novo charter has tied its hands, making it harder to compete in a fast-moving market where flexibility is key. The January CFPB report on Buy Now Pay Later (BNPL) brings eye-opening insights. Despite its claim to help those without credit, 45% of BNPL loans go to deep subprime borrowers, not credit newbies. The data also shows users stacking loans across providers, with rising credit card default rates. The takeaway: BNPL’s shiny promises don't align with its impact. Plus, we’re keeping the BNPL convo going with a rapid-fire round of updates. Finally, we wrap up with a few rants you won’t want to miss—like the transparency crisis in financial services and crypto. Powell’s vague responses to Synapse’s failures highlight a deeper issue: accountability. Meanwhile, crypto’s obsession with meme coins is sinking to new lows. Where have all serious players gone? We're diving in. 00:04:50 - Washingtonian Recap 00:26:41 - Varo’s Charter Conundrum 00:40:59 - BNPL News, Grab Bag Style 01:07:45 - Can’t Let It Go Sign up for Alex’s Fintech Takes newsletter for the latest insightful analysis on fintech trends, along with a heaping pile of pop culture references and copious footnotes. Every Monday and Thursday: https://workweek.com/brand/fintech-takes/https://workweek.com/brand/fintech-takes/ [https://workweek.com/brand/fintech-takes/]  And for more exclusive insider content, don’t forget to check out my https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videosYouTube page [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos].   Follow Jason: Newsletter: https://fintechbusinessweekly.substack.com/https://fintechbusinessweekly.substack.com/ [https://fintechbusinessweekly.substack.com/] LinkedIn: https://www.linkedin.com/in/jasonmikula/https://www.linkedin.com/in/jasonmikula/ [https://www.linkedin.com/in/jasonmikula/]   Follow Alex:  YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videoshttps://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos] LinkedIn: https://www.linkedin.com/in/alexhjohnsonhttps://www.linkedin.com/in/alexhjohnson [https://www.linkedin.com/in/alexhjohnson] Twitter: https://www.twitter.com/AlexH_Johnsonhttps://www.twitter.com/AlexH_Johnson [https://www.twitter.com/AlexH_Johnson]

Welcome to Fintech Takes! I’m Alex Johnson, and today we’re heading straight into the belly of the beast—Washington, D.C.—where regulators, banks, and fintechs are jockeying for position. Joining me is Rob Blackwell, a 20-year American Banker veteran, Intrafi’s Chief Content Officer, and host of the Banking with Interest pod. Today, we're diving into the big four: CFPB, OCC, FDIC, and the Fed. Regulatory shifts are moving fast, so by the time this airs, this could all be outdated—but hey, c’est la vie! First up, the push to gut the CFPB is gaining ground in some circles, but even banks and credit unions see value in maintaining a referee. Will the CFPB be sidelined (to, ahem, crypto’s benefit) or bounce back with a vengeance? Rob’s take is that it’ll be weakened, not wiped out—it’s too useful politically. Next, the FDIC's tailored supervision shouldn’t mean loosening oversight, especially where fintech partnerships are involved. Small banks aren’t JPMorgan, but they still need scrutiny. Same goes for the OCC, where new leadership is prioritizing collaboration with banks while pushing for targeted regulation to keep things fair. No wild cards here; Trump’s picks are pragmatic, not radical. Finally, the FDIC and Fed are pushing for clearer rules and more transparency, aiming to rein in overreach without forcing banks into unwanted partnerships. The challenge: giving banks discretion while preventing regulators from nudging them into silent exclusions. Bottom line? The rules are changing, but power plays never do. Sign up for Alex’s Fintech Takes newsletter for the latest insightful analysis on fintech trends, along with a heaping pile of pop culture references and copious footnotes. Every Monday and Thursday: https://workweek.com/brand/fintech-takes/ [https://workweek.com/brand/fintech-takes/] And for more exclusive insider content, don’t forget to check out my YouTube page [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos]. Follow Rob: LinkedIn: https://www.linkedin.com/in/khaslett/https://www.linkedin.com/in/rob-blackwell-63884826/ X: https://twitter.com/khasletthttps://x.com/robblackwellab   Follow Alex:  YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos] LinkedIn: https://www.linkedin.com/in/alexhjohnson [https://www.linkedin.com/in/alexhjohnson] X: https://www.twitter.com/AlexH_Johnson [https://www.twitter.com/AlexH_Johnson]

Welcome back to Bank Nerd Corner, featuring yours truly and #1 among all bank nerds, Kiah Haslett, Banking and Fintech Editor at Bank Director. By the time you’re reading this, we’ve had ~3 weeks of “fun” updates from the CFPB, and we have a lot to unpack! First up, who actually wants the CFPB gone? Gutting the CFPB won’t end consumer protection; it just shifts the burden. Funny how the loudest CFPB critics are the ones who profit most from consumer confusion. Even some bank execs admit the CFPB keeps markets fair. Referees are annoying, but you don’t want a game without them. Next, it seems like regulators care again about de novo banks (a topic we touched on 18 months ago but hey, who’s counting?). Post-crisis regulations, slow approvals, and a weaker market for bank sales have made starting a new bank a very tough sell. Plus, new banks are facing VC-style growth pressure, often relying on risky funding just to stay afloat. But it’s not just community banks pushing for change—fintechs want in, too. So, why are fintechs suddenly advocating for more de novo charters? And did fintech and BaaS make them obsolete by offering a faster, more efficient path to scaling and returns? Switching gears: debanking raises serious questions about how reputation factors into bank risk evaluations. If reputation matters, can’t it be weaponized? Crypto wasn’t changing the world, but regulators fumbled debanking. Transparency is key—if it’s a “no,” just say it, don’t dodge FOIA requests. Kiah nails it with this analogy: Crypto is like BaaS. Both used middleware to scale quickly, but while crypto’s risks were obvious, BaaS flew under the radar—until Synapse and cease-and-desists made it impossible to ignore. And finally, the unanswerable question of the week: what’s FinCEN actually doing? Banks still can’t warn each other about fraud. FinCEN hoards data for law enforcement but isn’t required to use it. So, what’s the point? Sign up for Alex’s Fintech Takes newsletter for the latest insightful analysis on fintech trends, along with a heaping pile of pop culture references and copious footnotes. Every Monday and Thursday: https://workweek.com/brand/fintech-takes/https://workweek.com/brand/fintech-takes/ [https://workweek.com/brand/fintech-takes/] And for more exclusive insider content, don’t forget to check out my https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videosYouTube page [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos].   Follow Kiah: LinkedIn: https://www.linkedin.com/in/khaslett/https://www.linkedin.com/in/khaslett/ [https://www.linkedin.com/in/khaslett/] Twitter: https://twitter.com/khasletthttps://twitter.com/khaslett [https://twitter.com/khaslett]   Follow Alex:  YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videoshttps://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos] LinkedIn: https://www.linkedin.com/in/alexhjohnsonhttps://www.linkedin.com/in/alexhjohnson [https://www.linkedin.com/in/alexhjohnson] Twitter: https://www.twitter.com/AlexH_Johnsonhttps://www.twitter.com/AlexH_Johnson [https://www.twitter.com/AlexH_Johnson]

Welcome back to Not Fintech Investment Advice, where instead of doling out investment advice (we’re not doing that), we spotlight interesting, new fintechs and share our perspectives. I’m Alex Johnson, creator of Fintech Takes, joined (as always) by my esteemed cohost Simon Taylor. First up: Rail, aka stablecoin APIs for B2B money movement across borders. Though not a new concept (hello, Bridge and BVNK), Rail has 12 partner banks across 12 countries. If you know anything about cross-border banking, you know that’s a big deal. With $11B in processed volume last year, Rail isn’t Stripe, but it’s not small potatoes either. So, can stablecoins finally knock out legacy systems in B2B payments? Next up is Anchor, an all-in-one platform for service-based small businesses that streamlines proposals, agreements, invoicing, and payments. Granted we’ve seen this model before, but Anchor integrates everything—plus, their $5 flat fee per transaction challenges subscription models as the pricing norm. Is this the future of financial automation? Over in the UK, Sencillo is helping parents unlock home equity to cover rising childcare and private school fees. With education costs now rivaling mortgage payments, fintech is stepping in where banks hesitate. But can this scale, especially as tax hikes loom? And what happens when borrowing against your house to afford tuition becomes the norm? Last and least (for this episode anyway!), ClosingLock tackles real estate wire fraud with a secure payments platform. Identity verification, document uploads, insured transactions—real estate needs this. But why hasn’t this level of security been the standard all along? And could this model expand to high-value sectors like luxury goods or auto sales? Plus, how do we change the center of gravity in lending, so pricing can be smarter, more personalized, and fairer to the consumer? 00:02:34 - Rail 00:13:57 - Anchor 00:31:20 - Sencillo 00:43:35 - ClosingLock 00:54:16 - Manifesting Fintech Ideas  Sign up for Alex’s Fintech Takes newsletter for the latest insightful analysis on fintech trends, along with a heaping pile of pop culture references and copious footnotes. Every Monday and Thursday: https://workweek.com/brand/fintech-takes/ [https://workweek.com/brand/fintech-takes/] And for more exclusive insider content, don’t forget to check out my YouTube page [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos]. Follow Simon: LinkedIn: https://www.linkedin.com/in/sytaylor/https://www.linkedin.com/in/sytaylor/ [https://www.linkedin.com/in/sytaylor/] Substack: https://sytaylor.substack.comhttps://sytaylor.substack.com [https://sytaylor.substack.com]   Follow Alex:  YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videoshttps://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos] LinkedIn: https://www.linkedin.com/in/alexhjohnsonhttps://www.linkedin.com/in/alexhjohnson [https://www.linkedin.com/in/alexhjohnson] Twitter: https://www.twitter.com/AlexH_Johnsonhttps://www.twitter.com/AlexH_Johnson [https://www.twitter.com/AlexH_Johnson] Companies featured: https://rail.io/ [https://rail.io/] https://www.sayanchor.com/ [https://www.sayanchor.com/] https://www.sencillo.finance/ [https://www.sencillo.finance/] https://www.closinglock.com/ [https://www.closinglock.com/]