US FinTech Brex has filed for an Industrial Bank Charter.
Brex, which offers financial products and business software, aims to become Brex Bank.
It’s applied through the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions (UDFI).
Brex will add loans and FDIC insured deposit products for SMEs to its offering, if successful.
What does this mean?
Brex started out in 2017 and has already raised $465mn in venture capital funding. Gaining a bank licence will enable it to expand the range of features it offers, and in turn its customer base – however, it will add Brex Bank to its Brex business. Proposed CEO of Brex Bank, Bruce Wallace – formerly of Silicon Valley Bank – says that both entities will “work in tandem to help SMBs grow and realise their full potential”.