We’re all thinking about the implications of the recent OCC announcement. 

Last week, the OCC recently granted conditional approval for SmartBiz Loans (Fintech) to acquire and convert CenTrust Bank, N.A. into SmartBiz Bank, N.A., a nationally chartered bank focused on small business lending. The approval came after a comprehensive review of SmartBiz’s operations and reflects the OCC’s willingness to welcome innovative fintech models into the federal banking system—provided they meet rigorous compliance and risk standards.

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What this means for Banks, Fintechs, and Partnerships

The approval is a clear signal: Fintechs want in, and regulators are cautiously letting them through the door. Acting Comptroller of the Currency, Rodney E. Hood, emphasized the conditional approval reflects the OCC’s commitment to regulatory frameworks that support banking innovation and expanding financial services access. 

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As the regulatory pendulum swings under the current administration, Fintechs are increasingly pursuing bank charters or direct acquisitions to solidify their position within the financial system. At the same time, banks are recognizing the opportunity to partner with nimble, tech-forward players to stay relevant and meet evolving customer expectations. The traditional lines between Fintech and bank are blurring, and regulatory agencies are showing a willingness—albeit cautiously—to support this evolution. 

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For the industry, this marks a new era of strategic convergence. Regulatory bodies like the OCC are opening the door to innovative business models, but the onus is on banks and Fintechs to demonstrate sound risk and compliance practices from day one. 

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What’s next — 5 predictions

1. Well capitalized Fintechs will explore bank M&A not just to secure stable bank partnerships, but also to gain direct access to the regulatory framework and deposit base needed to scale
2. Sponsor bank models will evolve into a mix of (1) formal joint ventures or co-owned entities with Fintech partners or (2) embedded offerings that tightly integrate compliance, ledger, and tech infrastructure that make it easier for Fintechs to launch while giving banks greater visibility and control
3. Expect regulators to double down on scrutiny during the approval process, even as they open new doors for innovation
4. Compliance maturity will become a competitive edge—especially for fintechs seeking OCC approval or bank partnerships
5. Banks and fintechs will increasingly rely on shared platforms (like Themis) to manage cross-enterprise oversight and streamline operations

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How Themis can help

• Streamline your compliance and risk management processes with built-in workflows and controls aligned to regulatory expectations in a collaborative, user-friendly all-in-one platform
• Robust, comprehensive oversight and management of your organization’s (and your partner’s!) compliance program from policy development and vendor onboarding to issue management and board reporting
• Seamlessly manage the entire lifecycle of your partnerships—from discovery, initial due diligence, and onboarding to ongoing monitoring & oversight– and centralize documentation, evidence, and requests for streamlined, trackable collaboration with your fintech partners.
• Provide a strong, seamless audit trail that stands up to regulator scrutiny and instills confidence with internal stakeholders and executive teams