Minneapolis-based Sezzle Inc. announced recently it had filed an application to charter a national bank.
In applications to the Office of the Comptroller of the Currently, and to the Federal Deposit Insurance Corporation, the bank said it seeks to charter a national bank that, if approved, would offer a broad range of banking products and services including deposit accounts, checking and savings accounts and credit products.
“Applying for a national bank charter reflects our commitment to operating under the highest standards of federal oversight,” Charlie Youakim, Chief Executive Officer and Executive Chairman of Sezzle said. “A charter would allow us to offer a broader set of banking products to people who prefer BNPL and digitally native banking products, with the same federal supervision that applies to every national bank.”
Sezzle Bank would focus on digitally native consumers, the bank said, including those new to credit who tend to avoid using traditional credit products like credit cards. The goal, the bank said, was to provide a choice of lending options.
The bank would be subject to ongoing supervision and examination by OCC, including for safety and soundness, consumer compliance, Bank Secrecy Act/anti-money laundering and fair lending, officials said. Sezzle will also apply to become a bank holding company to consolidate supervision by the Board of Governors of the Federal Reserve System, the bank said.
The filing is the first step in Sezzle’s formal charter application process. The bank said its customers would see no change for the time being, and that it will continue working with its existing partners.