President Trump’s push for more banks has spurred a wave of applications from fintechs and automakers. PayPal, buy‑now‑pay‑later leader Affirm, and Detroit’s Big Three—Ford Motor, General Motors and Stellantis—have all filed for national charters. The White House and a regulatory roll‑back are the main incentives, promising lighter supervision and federal pre‑emption of state consumer rules to become banks now as a.

Banks would let these firms control loan origination and asset holdings, eliminating costly third‑party partners. Upstart CEO Paul Gu called the move “a natural next step,” noting the company already underwrote $11 billion in loans last year but must rely on a network of 100+ banks. A charter also offers the ability to set interest rates above state caps for future growth.

Regulators argue the surge reverses a 15‑year slump that left annual bank births at a 1960s low. Yet consumer groups warn that national‑trust charters, recently granted to Ripple Labs and Fidelity Digital Assets, sidestep capital buffers and deposit insurance, raising default risk for the industry. The influx of non‑traditional banks could reshape credit markets, but also intensify regulatory arbitrage concerns.