Israeli payments firm Nayax and fintech infrastructure provider Zaria Systems have submitted applications to US regulators seeking bank charters, joining a growing wave of fintech companies pursuing traditional banking licenses. Nayax operates a payments and loyalty platform, while Zaria Systems specializes in infrastructure for mark-to-market credit and structured finance. The filings signal both companies’ ambitions to expand their service offerings and gain direct access to the US banking system without relying on third-party banking partners.
The move comes as fintech firms increasingly seek regulatory approval to offer banking services directly, aiming to capture more revenue and control customer relationships end-to-end. Bank charters would allow both companies to hold deposits, issue credit products, and operate with greater regulatory oversight but also enhanced capabilities. The applications face a thorough review process that typically takes months to complete. Market watchers expect regulatory scrutiny given recent fintech-banking partnership challenges and banking sector volatility.
FXnCO Insight
Traders should monitor these charter applications as approval could reshape competitive dynamics in payments processing and structured finance, potentially pressuring incumbent financial institutions’ market share.
Source: Finextra