These are extraordinary times for the banking industry, and plenty of banking drama surfaced in the past month: Payments companies are pursuing bank charters, banks are buying fintechs, credit unions are being taxed for buying banks, SBA lending rules are tightening based on residency status, and the political fire surrounding the Federal Reserve is intensifying. Taken together, these stories point to a deeper shift in how power, access, and accountability are playing out across the financial system. Here is what community banks and credit unions need to know.
A wide range of nontraditional players continue to step up their push to become banks. Payments company Checkout.com received conditional approval for a merchant acquirer limited purpose bank charter in Georgia. Buy now, pay later giant Affirm is seeking a Nevada industrial bank charter. Crypto-related entities, including a Trump family-backed firm, are reportedly exploring national trust bank charter options as well. At the same time, digital-first banks like Brazil’s Nubank have received conditional approval from the Office of the Comptroller of the Currency to establish a national bank in the U.S.
This surge has reignited a long-running debate over trust charters and special purpose charters. Critics argue that some applicants want the benefits of being a bank, such as payment system access, credibility, and regulatory cover, without taking on the full obligations of deposit taking, lending, and community reinvestment. Supporters counter that modern payments and fintech firms need bank status to operate safely at scale and manage liquidity. Regulators now find themselves balancing innovation with concerns about regulatory arbitrage and uneven oversight.
Acceleron is on its own multi-year bank charter journey to become a full-fledged correspondent bank, so that we can expand our capabilities to help community financial institutions automate international wire processes and capture foreign exchange spreads. Read more about de novo bank formation in the latest issue of our newsletter, The Exchange.
Community banks and credit unions are watching all the bank charter developments closely because the outcome could reshape competitive dynamics. If payments companies and crypto firms gain bank charters with lighter requirements, they may enjoy faster access to payment rails and cheaper funding without the same compliance burden community institutions shoulder every day. On the other hand, clearer rules and higher standards could level the playing field and reinforce the value of the traditional banking model. Either way, decisions made now will influence who gets access to core banking infrastructure and under what conditions, a question that sits at the heart of competition, safety, and fairness in the financial system.
While many fintechs continue to pursue bank charters, there’s a flip side to the trend: banks that already hold charters are acquiring fintechs to modernize their technology and expand product capabilities. A recent example is Coastal Community Bank, which announced plans to acquire one of its fintech partners, GreenFi, which offers climate-friendly consumer financial services products. Following the acquisition, GreenFi will operate as part of the bank, rather than as a standalone BaaS client. Coastal will assume responsibility for oversight and governance.
This bank-acquiring-fintech scenario is becoming more common. Capital One announced plans to acquire expense management and corporate card fintech Brex. While Capital One is far larger than most community banks, the strategic logic is similar: banks are choosing to own differentiated fintech capabilities outright instead of relying solely on partnerships. Other examples include the First Carolina Bank acquisition of one of its fintech partners, BM Technologies, and Fifth Third Bank’s acquisition of Rize Money to bring modern payments infrastructure in-house.
For community banks and credit unions, this trend highlights a powerful alternative to chasing new charters or layering on multiple third-party vendors. Institutions with an existing charter can accelerate innovation by acquiring proven fintech platforms and integrating them directly into their operations, gaining tighter control over compliance, data, and product roadmaps. As more banks internalize fintech capabilities, community institutions will need to decide whether buying, building, or partnering is the right path to stay competitive in payments, BaaS, and digital banking services.
Another form of consolidation is drawing sharper scrutiny: credit unions buying banks. In Washington state, lawmakers recently moved to make these transactions more costly by imposing a new tax when a credit union acquires a bank, triggering swift backlash from the credit union industry.
Under the rule that took effect on January 1, any Washington state-chartered credit union that acquires a state-chartered bank is required to pay a 1.2% business and occupation tax on gross income. Credit unions argue the policy unfairly targets one specific form of consolidation, warning it could discourage deals that often preserve local branches and provide an exit for struggling community banks. Industry groups have blasted the measure as punitive, while banking trade groups counter that it addresses a long-standing imbalance that allows tax-exempt institutions to buy tax-paying banks without contributing to state revenues. The debate has quickly escalated, with credit union advocates signaling they are actively talking to Washington lawmakers about their concerns.
For community banks, the new tax could narrow the pricing advantage credit unions have historically enjoyed in acquisition bids, potentially reshaping who can compete for bank deals. For credit unions, it introduces uncertainty around M&A strategy and raises the risk that similar taxes could emerge in other states. More broadly, the controversy signals growing political and regulatory attention on cross-charter consolidation and tax policy, suggesting that how banks and credit unions grow through acquisition may face closer scrutiny in the years ahead.
While the failure of Metropolitan Capital Bank & Trust marked the first bank closure of 2026, the more consequential story may be what followed. Detroit-based First Independence Bank agreed to assume Metropolitan Capital’s deposits and acquire its assets, ensuring continuity for customers and minimizing disruption. The transaction highlights how healthy community banks continue to play a stabilizing role in the system, even as isolated institutions struggle.
The deal is notable not just for its mechanics but for its leadership. First Independence Bank’s CEO, Kenneth Kelly, currently serves as chair of the American Bankers Association. His bank’s role in this resolution underscores the capacity of well-capitalized community banks to step in quickly when regulators need a trusted counterparty to resolve a failure efficiently.
For community banks and credit unions, this episode offers a reminder that resilience creates opportunity. Institutions with strong balance sheets, disciplined risk management, and regulatory credibility can emerge from periods of stress not just intact, but expanded. Looking ahead, as regulators remain alert for signs of weakness across the sector, capable community institutions may increasingly be called upon to absorb assets, deposits, or customers from troubled peers. The takeaway is forward-looking: preparation, capital strength, and governance matter because they determine whether an institution is reacting to disruption or positioned to lead through it.
The Small Business Administration announced that, effective March 1, lawful permanent residents, including green card holders, will no longer be eligible for SBA-backed small business loans. The SBA has raised its ownership requirement, meaning businesses must now be 100% owned by U.S. citizens, U.S. nationals, or lawful permanent residents, up from the prior 51% standard. The change marks a significant tightening of eligibility rules and reverses long standing practice that allowed many immigrant entrepreneurs with legal status to access SBA financing. The update follows internal guidance changes and has already raised concerns among lenders who rely on SBA programs to support local small businesses.
The new restriction narrows the pool of eligible borrowers at a time when many small businesses are still navigating higher rates and tighter credit conditions. For banks, the shift introduces new complexity into underwriting and borrower screening, particularly in communities with a high concentration of immigrant-owned businesses that have historically qualified for SBA loans.
Community banks and credit unions are among the most active SBA lenders, and this rule change directly affects how they can deploy capital in their markets. Institutions will need to reassess pipelines, adjust eligibility checks, and potentially turn away borrowers based on residency status. More broadly, the move could impact small business formation and expansion in local economies, putting community lenders in the difficult position of managing compliance while limiting access to credit for a segment they have long served.
Who knew the Federal Reserve could be such a hotbed of drama? This month, the Fed held interest rates steady, signaling a continued wait and see approach as inflation and economic growth send mixed signals. But the policy decision was quickly overshadowed by political crosscurrents. Fed Chair Jerome Powell pushed back against a Justice Department subpoena over the renovation of the Fed’s headquarters. In a statement, he said: “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preference of the President.” Meanwhile, former Fed officials publicly emphasized that markets still trust the Fed’s independence.
At the same time, President Trump nominated Kevin Warsh, a former Fed governor, as the next Federal Reserve chair, setting up a period of heightened uncertainty around the central bank’s future leadership and direction.
For community banks and credit unions, the takeaway is less about short-term rate moves and more about confidence and credibility. Markets price loans, deposits, and liquidity based on trust in the Fed’s independence and predictability. Public attacks on Fed leadership and uncertainty around the next chair may introduce noise that can spill into funding costs, interest rate expectations, and exam posture. As 2026 unfolds, it behooves community institutions to prepare for volatility not just from economic data, but from the growing politicization of monetary policy itself.
Last month, we had additional coverage of the bank charter race, the Fed’s exploration of “skinny” master accounts, a regulatory relief agenda for community banks, cybersecurity expectations for banks, and an M&A rebound. Missed it? Catch up here.
Acceleron is a modern correspondent banking technology platform that empowers community banks and credit unions to automate international wire transfers, capture non-interest income, and compete more effectively with big banks. With a foreign exchange (FX) marketplace and currency conversion engine, Acceleron’s API-first infrastructure helps institutions turn cross-border payment flows into efficient, revenue-generating opportunities. Serving over 200 financial institutions and facilitating more than $1 billion in international payments annually, our correspondent banking services and international payment automation solutions are pre-integrated seamlessly with Fiserv Payments Exchange, Aptys, Braid, and other leading payments platforms.
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