For years, fintechs drove growth by leveraging innovative technology, serving underserved customers, and offering lower costs. Many relied on bank partnerships to gain scale and reach new customers. Now, in a twist of fate, some of the industry’s largest players are now trying to become banks themselves.
In recent months, Chime announced plans to acquire longtime partner Stride Bank, Revolut received conditional approval to establish a U.S. national bank and OppFi announced plans to acquire the parent company of a nationally chartered bank. Amid a more receptive regulatory environment, the Office of the Comptroller of the Currency (OCC) received 40 new bank charter applications over the past 18 months. Becoming a bank can unlock new growth opportunities and reduce reliance on sponsor banks, but it also brings heightened expectations.
Fintechs built their reputations around challenging the traditional banking model. Now, they must demonstrate to customers, employees, investors, regulators and other stakeholders that they are prepared to assume the responsibilities of being a bank. That requires a communications strategy that extends well beyond announcing a transaction or charter approval. Three considerations should guide that strategy.
1. Shift the disruption narrative
Fintechs have spent years defining themselves as faster, more innovative alternatives to traditional banks. As they become banks themselves, that narrative must evolve.
The communications challenge is to demonstrate that innovation and responsible banking can coexist. That starts with articulating why becoming a bank advances the company's mission and what customers stand to gain.
Customers will have practical questions about how the transaction affects them: What will change? What will stay the same? Will I have access to new products? What does this mean for my money?
The strongest narratives will connect banking ambitions to tangible customer benefits, such as new products, lower costs and enhanced rewards, while also acknowledging the greater responsibilities that come with expanded capabilities.
2. Prepare for a new level of scrutiny
Becoming a bank introduces new stakeholders and heightens scrutiny from existing audiences. Reporters who once focused on growth, valuation and product innovation may shift their attention to capital, credit risk, deposits, compliance, consumer protection and regulatory oversight.
That makes reputation management an important complement to financial, legal and regulatory reviews. Communications teams should revisit past regulatory matters, customer complaints, executive commentary, marketing claims and criticism of traditional banks through the lens of the institution the company seeks to become.
Companies should identify their expanded stakeholder universe early and tailor communications accordingly. Existing customers may seek reassurance about the deposit safety and service continuity, while prospective customers may focus on new benefits. Corporate partners will want clarity on existing relationships, while regulators will expect accurate information about governance, risk management and operational readiness. Anticipating these concerns will help communications teams deliver relevant messages to each audience.
3. Demonstrate stability to establish trust
Few things undermine credibility faster than communicating ahead of reality. Bank acquisitions and charter applications involve multiple stages, and conditional regulatory approval is not the same as authorization to begin operations.
Communications, legal and regulatory teams should remain aligned throughout the process to ensure press releases, interviews, executive social posts and internal communications accurately reflect the company’s regulatory status.
Even after a transaction closes or a charter is granted, the communications work continues. The months that follow are critical to reinforcing the company’s new identity and demonstrating what the transaction means for customers.
Communications can build institutional credibility by highlighting tangible investments in risk and compliance, experienced leadership, stronger governance, board expertise and operational infrastructure. These actions provide evidence that the company is prepared for expanded responsibilities.
The next phase of transformation
A more receptive chartering environment creates opportunities for fintechs to bring banking capabilities in-house, but those opportunities come with new reputational demands.
Innovation and growth remain central to fintechs’ identities, but they must be matched by governance, resilience, and accountability..
For fintechs becoming banks, communications must do more than explain the transaction. It must demonstrate that the company is ready to earn the trust that comes with being a bank.
By Carolyn Gasbarra, Senior Vice President, Edelman Smithfield and Brett Philbin, Executive Vice President, Edelman Smithfield.