Plans for deposits and lending
If approved, Sezzle Bank would offer FDIC-insured deposits, including checking and savings accounts, alongside credit products. Its intended customers are digitally native consumers, including people new to credit, who tend to avoid traditional products such as credit cards and want other borrowing options.
Checking is already on Sezzle's product agenda, but the company will wait until it operates its own bank before introducing an account, CEO and Executive Chairman Charlie Youakim told Banking Dive in August 2026.
Youakim said the charter application reflects Sezzle's commitment to the highest standards of federal oversight. He said a charter would allow the company to broaden its banking offerings for customers who prefer buy now, pay later (BNPL) and digitally native banking products, under the supervision that applies to all national banks.
Why Sezzle changed its charter strategy
Sezzle previously planned to seek a Utah industrial loan company (ILC) license. In the August interview with Banking Dive, Youakim attributed the switch to new BNPL regulations in states including New York, Illinois and Oregon, as well as criticism of the ILC structure from banks and consumer groups.
TD Cowen analyst Hoang Nguyen told Banking Dive that an OCC charter would protect Sezzle's ability to offer its rates and product features across all states without state challenges. He also raised a question about federal oversight: Sezzle depends more heavily on customer fees than other BNPL providers, leaving uncertainty about how that fee structure would fare under tighter federal regulation.
OCC examinations and ongoing supervision would cover the proposed bank's safety and soundness, consumer compliance, Bank Secrecy Act and anti-money laundering requirements, and fair lending. Sezzle also plans to apply for bank holding company status, which would place it under consolidated supervision by the Federal Reserve Board of Governors.
More fintechs pursue bank charters
The OCC recorded 49 de novo charter applications and 28 approvals from January 2025 through October 23, 2026. That compares with an annual average of fewer than four applications during 2011 through 2024, according to the regulator.
Other fintechs pursuing OCC charters in 2026 include Block, Ramp, Avant and Modern Treasury, The Paypers reported. Some companies have chosen the industrial bank route instead: Affirm applied for an ILC charter in Nevada, while PayPal sought a similar Utah license in December 2025. Upgrade also submitted applications to Nevada regulators and the FDIC for an industrial loan bank.
Review expected to take 12 to 18 months
The applications start Sezzle's formal charter review process; they do not represent regulatory approval. Sezzle expects approvals from the OCC, the Federal Reserve and the Federal Deposit Insurance Corporation to take 12 to 18 months, according to Banking Dive, but approval is not guaranteed.
Customers face no changes for now. Sezzle will keep working with its existing lending partners and says it will issue updates as appropriate.
