News Pod #26 - The Fintech Bank Charter Gold Rush

Klarna just filed to become a bank. They're the ninth major fintech since December, joining Affirm, PayPal, Upstart, Revolut, Bunq, Mission Lane, and OppFi. The OCC saw 18 de novo applications in 2025, nearly matching the previous four years combined. Carlos and Nick break down why everyone is running for the regulatory door: cheaper funding through insured deposits, control without a sponsor bank in the middle, and a political window that may not stay open. They dig into the Klarna paradox. The company tells investors it's a spend-centric business, yet Morgan Stanley notes nearly all incremental profit comes from lending. Which one is the charter for? Plus: what a deposit-funded fintech tier means for subprime cards, Mission Lane's filing, and who files next (Chime, anyone?).   Newsletter version of this story: https://www.thefreetoaster.com/p/klarna-just-filed-for-a-bank-charter ******   Come meet Carlos & Nick in San Francisco! The Affiliate Marketing Summit For Lenders & Publishers Sponsored by Experian, Engine by Gen, and Prism Data San Francisco - September 23rd & 24th The Exploratorium 150-person, curated room Early bird tickets ($999) end August 1 Learn more: events.thefreetoaster.com   *****   Sign Up For Our Newsletter   The Free Toaster Newsletter ships every Wednesday at www.thefreetoaster.com, curating the biggest stories at the intersection of consumer lending, marketing, and technology. ****** Please Support Our Sponsors   Fintel Connect   Drive thousands of new accounts and billions in deposits with the only partner marketing solution built for fintech and banking – your all-in-one affiliate platform, partner network, agency, and marketing compliance engine. https://partner.fintelconnect.com/get-to-know-fintel-connect?utm_campaign=13897733-2025%20Partners&utm_source=The%20Free%20Toaster&utm_medium=podcast   Bulldog Media Group: Bulldog Media Group is a leading performance marketing company that specializes in online customer acquisition for clients in the financial services industry. Since 2000, they have focused on financial services digital marketing as their core niche.  https://www.bulldogmediagroup.com/   Spinwheel:   Reduce friction in your lending application with just two fields—phone number and birthdate. Spinwheel’s APIs boost application rates by 20-30% while also providing real-time credit data and seamless payment processing. Want to see it in action? Connect with their Head of Growth for a demo! https://spinwheel.io/partner/?utm_source=freetoaster&utm_medium=podcast&utm_campaign=july     New Market Growth (Carlos’ agency) NMG focuses on building affiliate marketing programs for consumer lenders. www.newmarketgrowth.com