U.S. fintech Mercury has submitted applications for a national bank charter and federal deposit insurance, marking a significant evolution for one of Silicon Valley's most successful startup banking platforms.
On December 19, 2025, Mercury announced it had applied to the Office of the Comptroller of the Currency (OCC) for a national bank charter and to the Federal Deposit Insurance Corporation (FDIC) for deposit insurance. The move positions Mercury among a select group of fintechs pursuing direct bank status rather than operating through partner bank relationships.
Mercury's Path to Profitability
The charter application comes from a position of unusual financial strength for a fintech company. As of November 2025, Mercury reported:
- Over 200,000 customers
- $650 million in annualized revenue
- Three consecutive years of GAAP profitability
- Penetration of one in three U.S. startups
This profitability track record distinguishes Mercury from many fintech competitors that have prioritized growth over sustainable unit economics. The company's financial position likely strengthens its regulatory application, as banking regulators carefully scrutinize applicants' financial viability and risk management capabilities.
What a Bank Charter Means
Currently, Mercury operates through partnerships with FDIC-insured banks to offer deposit accounts and other banking services. A national bank charter would allow Mercury to:
- Hold deposits directly under its own FDIC insurance
- Operate under direct regulatory oversight from the OCC
- Potentially expand product offerings with greater flexibility
- Build long-term regulatory relationships independent of partner banks
"Becoming an FDIC-insured national bank aligns with our long-term vision and will allow Mercury to deliver a better customer experience at scale," said Immad Akhund, Mercury's co-founder and CEO.
The company emphasized that nothing changes for current customers during the application process, which typically takes 12-18 months or longer depending on regulatory review.
Banking Leadership Addition
Mercury announced the appointment of Jon Auxier as Chief Banking Officer, who would serve as CEO and President of the proposed Mercury Bank upon regulatory approval. Auxier brings relevant charter experience from his time as CFO of SoFi Bank and Corporate Treasurer of SoFi Technologies, where he helped lead SoFi's successful bank charter application and implementation.
His background also includes senior roles at Green Dot, Goldman Sachs, and experience in public accounting. This appointment signals Mercury's strategy to combine its software-first approach with deep banking and regulatory expertise.
From Fintech to Full-Stack Bank
Founded in 2017 and launched publicly in 2019, Mercury initially focused on business banking for startups, offering checking and savings accounts through partner banks. The platform has since expanded to include:
- Investment accounts
- Business charge cards
- Internationale Überweisungen
- Lending products
- Bill payment and invoicing software
- Expense management tools
- Mercury Personal (consumer banking launched in 2024)
The proposed Mercury Bank would be headquartered in Utah, a state that has emerged as a hub for digital banking innovation and regulatory expertise.
Industry Context
Mercury's charter pursuit reflects broader trends in fintech maturation. While many fintechs launched with asset-light, partner-bank models to move quickly, some have encountered limitations in product development, customer experience control, and regulatory complexity.
Several fintechs have successfully obtained bank charters in recent years, including SoFi, LendingClub, and Varo. However, the regulatory bar remains high, requiring demonstrated financial strength, robust risk management systems, and credible management teams.
"Fintechs have become vital to how small businesses and entrepreneurs access the financial system," noted Tim Mayopoulos, Mercury board member and former CEO of Fannie Mae. "Mercury's decision to seek a national bank charter shows how innovation and oversight can reinforce one another."
What This Means for Startups
For Mercury's core customer base of startups and growth companies, a bank charter could mean enhanced stability and potentially expanded services. Direct bank status may allow Mercury to offer more competitive rates, develop proprietary lending products, and integrate financial services more seamlessly within its platform.
However, bank status also brings heightened regulatory compliance requirements, which could potentially slow product development compared to the fintech's previous agility. Balancing innovation with regulatory discipline will be crucial as Mercury transitions to direct bank operations.
Blick in die Zukunft
As Mercury enters the formal regulatory review process, the fintech will need to demonstrate its readiness across multiple dimensions: capital adequacy, risk management infrastructure, compliance systems, and governance frameworks. The company's profitability and existing regulatory relationships through partner banks position it favorably, but charter approvals remain rigorous and uncertain.
For the broader fintech ecosystem, Mercury's application represents another data point in the ongoing evolution from partnership models to direct bank ownership among scaled, profitable players. Whether this becomes a dominant pattern or remains limited to a subset of well-capitalized fintechs will depend on regulatory outcomes and competitive dynamics in the coming years.