John Brown
Member
Mercury seeks OCC national bank charter to become the bank for builders, formally submitting its application to the Office of the Comptroller of the Currency (OCC) for a national bank charter while also applying for federal deposit insurance through the Federal Deposit Insurance Corporation (FDIC).
This step marks a major institutional milestone for Mercury, the fintech company known for providing modern, software-driven financial services to ambitious companies, startups, venture-backed businesses and individuals now aiming to operate as a full-fledged national bank under direct regulatory oversight rather than relying on partner banks.
What the Charter Application Means
The national bank charter application reflects Mercury’s strategic goal to combine its fintech innovation with traditional banking stability and regulatory rigor. Approved charters allow firms to directly hold customer deposits, operate with FDIC insurance, issue loans, and expand core financial services with more autonomy than under partner bank relationships.Mercury currently serves over 200,000 customers, has generated significant revenue growth and reports multiple years of GAAP profitability conditions it says position the company for a regulated future as a bank built for innovative companies.
Under the proposed structure, Mercury Bank, N.A. would be formed as a wholly owned subsidiary once approvals are secured, with a focus on tight integration of digital banking technology and traditional chartered-bank functionality.
Strengthening Trust, Stability and Customer Experience
According to Mercury’s co-founder and CEO Immad Akhund, becoming an FDIC-insured national bank aligns with the company’s long-term vision to provide greater stability, trust and confidence for its customers. Charters bring direct federal supervision, mandatory capital and risk-management standards, and the ability to expand regulatory-approved services in a way that fintech partnerships do not.For customers, the transition would not immediately change existing services, but over time could deepen product offerings, enhance deposit security, and allow Mercury to innovate within the traditional banking framework while preserving the software-first experience that defines its brand.
Leadership and Strategic Execution
As part of its charter efforts, Mercury has appointed Jon Auxier as Chief Banking Officer and the proposed CEO and President of Mercury Bank, subject to regulatory approval. Auxier brings deep experience from roles at SoFi Bank, Green Dot and Goldman Sachs, including participation in bank charter processes expertise expected to support Mercury’s navigation of federal banking requirements.Auxier noted that few fintech companies reach the scale and discipline required to pursue a charter at this level, emphasizing Mercury’s profitability, operational maturity and balance-sheet strength as key enablers of this move.
Strategic Significance for Fintech and Business Banking
From Partner-Dependent to Self-Sufficient Banking
A national charter would allow Mercury to reduce reliance on traditional partner banking relationships where it currently offers services through FDIC-insured intermediaries and instead run core banking functions under its own regulatory status, such as deposit taking, loan origination and product pricing decisions.This independence can enhance product speed and flexibility, enabling Mercury to integrate financial products more tightly with its software stack for startups and scaleups.
Competitive Positioning in Business Banking
Startups and growing companies have historically faced challenges with traditional banks including onboarding complexity, legacy technology constraints and slower product development cycles. Mercury's charter bid positions it to compete more directly with incumbent banks by marrying innovation-led digital experiences with regulated bank services.Potential for Expanded Financial Services
With a charter, Mercury could expand into broader lending, savings and credit products under its own regulatory umbrella, potentially reaching new market segments and increasing its relevance beyond software-centric financial tooling.What Happens Next
The charter review process is rigorous and can take many months to over a year, involving federal examination, detailed capital and risk reviews, and public comments. During this period, Mercury will continue operating its current platforms while engaging with regulators to satisfy all criteria for a national bank charter and FDIC insurance.If approved, Mercury's transition could signal a broader trend of successful fintechs seeking full regulatory status demonstrating how digital financial platforms can evolve into banks that combine innovation with the safety and trust of traditional institutions.
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