Modern Treasury Moves to Open National Trust Bank

Modern Treasury is moving to become a federally regulated national trust bank. While they aren't a traditional lender, this move is a big deal for any retailer using modern payment platforms. Currently, most fintechs rely on partner banks to move money. By getting its own national charter, Modern Treasury can cut out the middleman. For you, this means faster payment processing and more reliable money movement between your customers, your financing partners, and your own accounts. If approved by the OCC, the company will have a direct seat at the table with federal regulators. This adds a layer of stability and security to the infrastructure that powers many behind-the-scenes financing tools. It essentially streamlines the 'plumbing' of the financial world. When the infrastructure is more efficient, costs for merchants typically go down and the speed of funding increases. You won't see a new credit card from them, but you might notice that your daily settlements and payout reconciliations become smoother and less prone to third-party bank outages.

Source: PYMNTS

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