Avant is building a bank from scratch as the OCC approves most charter applicants

Avant, a major player in the consumer credit space, is officially applying for a national bank charter. This move marks a significant shift for a company that has already facilitated over $17.6 billion in credit for nearly 5 million customers. For retailers and operators, this means one of the industry’s largest non-bank lenders is looking to become a full-service financial institution. By obtaining a charter, Avant will no longer need to rely on third-party partner banks to fund and issue their loans. This transition typically leads to lower capital costs for the lender and more streamlined product development. For your business, this could translate to more stable financing programs and potentially more competitive rates for your customers. When lenders own the bank, they have more control over the underwriting process and can react faster to market changes without waiting for a partner bank’s approval. Avant currently offers personal loans and credit cards, and a charter would allow them to expand their suite of financial products significantly. While the application process is rigorous and can take time, Avant is signaling its intent to be a permanent, deeply rooted fixture in the consumer lending landscape. Keep an eye on how this shift impacts their credit appetite and the speed of their loan approvals.

Source: Tearsheet

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