Mercury seeks OCC national bank charter to become the bank for builders, formally submitting its application to the Office of the Comptroller of the Currency (OCC) for a national bank charter while also applying for federal deposit insurance through the Federal Deposit Insurance Corporation (FDIC).
This step marks a major institutional milestone for Mercury, the fintech company known for providing modern, software-driven financial services to ambitious companies, startups, venture-backed businesses and individuals now aiming to operate as a full-fledged national bank under direct regulatory oversight rather than relying on partner banks.
From Fintech Platform to Federally Regulated Bank
Founded to address the frustrations startups face with traditional banks—slow onboarding, outdated technology, and limited flexibility—Mercury has grown into one of the most recognized fintech brands serving the innovation economy. Today, the company serves more than 200,000 customers, including startups, scaleups, and technology-driven small businesses, and reports strong revenue growth alongside multiple years of GAAP profitability.
Until now, Mercury has operated through partnerships with FDIC-insured banks, a common structure in fintech that enables companies to offer banking services without holding a charter themselves. While this model has allowed rapid innovation, it also comes with limitations, including dependence on partner banks for core functions such as deposit holding and regulatory approvals.
By seeking a national bank charter, Mercury aims to move beyond those constraints and assume direct responsibility for banking operations under federal supervision.
What a National Bank Charter Would Enable
A national bank charter granted by the OCC would give Mercury the authority to operate as a bank in its own right, rather than as a fintech layered on top of traditional institutions. With FDIC insurance in place, Mercury would be able to directly hold customer deposits, expand lending activities, and develop new regulated financial products under its own license.
Under the proposed structure, Mercury would establish Mercury Bank, N.A. as a wholly owned subsidiary. This bank would integrate Mercury’s digital platform and software capabilities with the legal and regulatory framework of a national bank, enabling tighter alignment between product development and banking operations.
For customers, the immediate experience would remain largely unchanged. However, over time, the charter could unlock deeper functionality, greater product breadth, and enhanced long-term stability.
Strengthening Trust, Stability, and Regulatory Oversight
Mercury’s leadership has emphasized that the charter application is not merely about growth, but about trust and durability. Operating as a federally regulated bank would subject Mercury to direct oversight by the OCC and FDIC, including capital requirements, liquidity standards, risk management expectations, and regular examinations.
According to co-founder and CEO Immad Akhund, this level of supervision aligns with Mercury’s long-term commitment to its customers. He has noted that a charter would provide greater confidence and resilience, particularly during periods of market volatility when customers are increasingly focused on where and how their funds are held.
The move also reflects lessons learned across the fintech sector, where reliance on partner banks can introduce structural risks and operational dependencies. By holding its own charter, Mercury would gain more control over its destiny while embracing the responsibilities that come with being a regulated financial institution.
Leadership Appointments Signal Readiness
As part of its charter pursuit, Mercury has strengthened its executive team to meet regulatory expectations. The company has appointed Jon Auxier as Chief Banking Officer, with plans for him to serve as President and CEO of Mercury Bank, N.A., subject to regulatory approval.
Auxier brings extensive experience in regulated banking environments, including leadership roles at SoFi Bank, Green Dot, and Goldman Sachs. Notably, he has firsthand experience navigating bank charter processes—expertise that will be critical as Mercury works through the rigorous review required by federal regulators.
Auxier has emphasized that only a small number of fintech companies reach the scale, profitability, and operational maturity necessary to credibly pursue a national bank charter. In his view, Mercury’s financial discipline, balance-sheet strength, and focus on risk management have positioned it to take this step responsibly.
Why This Matters for Mercury’s Customers
For startups and builders, banking is not just a utility—it is infrastructure. Delays in onboarding, limited product flexibility, or uncertainty about fund safety can materially affect a company’s ability to operate and grow.
A national bank charter could allow Mercury to:
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Offer expanded lending and credit products tailored to startups and small businesses
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Improve deposit protection clarity through direct FDIC insurance
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Accelerate product innovation without dependency on partner bank approvals
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Deepen integration between banking services and Mercury’s software tools
While customers would not see immediate changes, the long-term impact could be a more comprehensive financial platform designed around the real workflows of modern businesses.
Strategic Implications for the Fintech Industry
Mercury’s charter application places it among a growing—but still selective—group of fintech companies seeking full regulatory status. Over the past several years, firms such as SoFi and Varo have successfully obtained bank charters, demonstrating a pathway for fintechs to evolve into regulated institutions.
This trend reflects a maturation of the fintech sector. Early fintech innovation focused on speed and user experience, often at the expense of regulatory complexity. Today, leading fintechs are increasingly recognizing that long-term scale requires regulatory integration, not avoidance.
Mercury’s move signals confidence that fintech and traditional banking are no longer mutually exclusive—and that software-driven companies can meet the standards expected of national banks.
From Partner Banking to Full Autonomy
Operating under a partner-bank model has enabled Mercury to grow rapidly, but it also imposes structural limits. Product decisions, pricing, and certain operational changes require coordination with third-party banks, which can slow innovation and introduce friction.
A national charter would give Mercury greater autonomy over:
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Deposit and treasury products
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Loan origination and underwriting frameworks
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Pricing and balance-sheet strategy
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Compliance and risk management alignment with product design
This autonomy could translate into faster iteration cycles and more cohesive financial products designed specifically for builders rather than retrofitted from legacy banking models.
Competitive Positioning in Business Banking
Traditional banks have long dominated business banking, but many struggle to serve startups and digitally native companies effectively. Legacy systems, manual processes, and conservative risk models often clash with the needs of fast-moving businesses.
Mercury’s charter bid positions it to compete more directly with incumbent banks by offering:
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Fully digital onboarding
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Modern APIs and integrations
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Transparent pricing
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Products designed for venture-backed and growth-stage companies
By combining these features with the credibility of a national bank charter, Mercury could carve out a distinctive position in the business banking landscape.
Regulatory Process and Timeline
Obtaining a national bank charter is neither quick nor guaranteed. The review process typically takes many months to more than a year, involving:
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Detailed examination of capital adequacy
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Risk management and compliance assessments
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Governance and leadership reviews
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Public comment periods
Throughout this process, Mercury will continue operating under its existing structure while engaging closely with regulators to address questions and meet all statutory requirements.
Approval would mark the beginning of a multi-phase transition as Mercury establishes Mercury Bank, N.A. and integrates banking operations under its new charter.
A Broader Signal for Digital Banking’s Future
Mercury’s charter application is about more than one company—it reflects a broader shift in financial services. As digital platforms increasingly handle mission-critical financial activity, customers and regulators alike are demanding stronger safeguards, transparency, and accountability.
By voluntarily stepping into the regulated banking system, Mercury is betting that the future of finance belongs to institutions that can combine innovation with responsibility, speed with safety, and software excellence with regulatory discipline.
Looking Ahead: Becoming the Bank for Builders
If approved, Mercury’s transition into a national bank could redefine what business banking looks like for the next generation of entrepreneurs. Rather than forcing builders to choose between modern tools and regulated stability, Mercury aims to deliver both in a single platform.
The outcome of the OCC and FDIC review will be closely watched across fintech, banking, and venture communities. Success could inspire other mature fintechs to pursue similar paths, further blurring the lines between traditional banks and technology-driven financial platforms.
For Mercury, the charter application is a bold step toward long-term independence, deeper trust, and a more expansive role in the financial lives of builders everywhere.
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