Ford, General Motors, and Stellantis have reportedly received preliminary FDIC approval for industrial bank charters, according to The New York Times.
- The approvals place Detroit automakers alongside fintech and crypto firms seeking deeper access to the U.S. banking system.
- Industrial bank charters would allow automakers to fund auto loans and financial products more directly through their own banking entities, the report said.
- It added that companies including PayPal, Affirm, and Upstart are also pursuing or expanding banking-related licenses.
Detroit's ‘Big Three’ automakers have reportedly received preliminary approval from the Federal Deposit Insurance Corporation (FDIC) for industrial bank charters, joining a growing list of financial technology companies, crypto firms, and household-name brands seeking to become banks under the Trump administration.
Ford Motor (F), General Motors (GM), and Stellantis (STLA) — the parent company of Chrysler, Jeep, and Ram — each received preliminary deposit-insurance approval from the FDIC for industrial banks, according to a report by The New York Times.
Ford’s stock rose nearly 4% in midday trade. Retail sentiment around the company on Stockwits improved to ‘bullish’ from ‘neutral’ over the past day and chatter climbed to ‘high’ from ‘normal’ levels.
Meanwhile, GM’s stock jumped nearly 5% but sentiment dropped to ‘neutral’ from the ‘bullish’ zone over the past day. Chatter stayed at ‘high’ levels. STLA’s stock climbed over 4% with retail sentiment trending in ‘extremely bullish’ territory, alongside ‘high’ levels of chatter.
Who Else Is in Line For A Banking Charter?
The automakers are not alone with the list of companies now seeking or holding bank charters, according to the report. It said that PayPal (PYPL), the payments giant with over 400 million active accounts, has an application under review. So does Affirm (AFRM), the buy now, pay later pioneer that processes billions in consumer credit annually without a banking license of its own.
On the crypto side, the Office of the Comptroller of the Currency (OCC) granted conditional national trust bank charters late last year to five crypto ventures, including Ripple Labs, and Fidelity Digital Assets. The charters allow the operators to act as custodians for customers' assets, including cryptocurrency. World Liberty Financial (WLFI), the crypto venture linked to the Trump family, is also among the applicants.
Upstart Holdings (UPST), the AI-powered lending platform that underwrote $11 billion in home equity, auto, and personal loans last year, announced in March that it would seek to become a national bank holding company subject to Federal Reserve supervision. Annie Delgado, Upstart's chief risk officer, is the intended chief executive of Upstart Bank if the charter is granted, the report said.
Enova (ENVA) and OppFi (OPFI), both of which specialize in short-term consumer lending, are each seeking to obtain charters by acquiring existing nationally chartered banks.
Why Ford, GM And Stellantis Want Banking Charters
For most of these firms, the appeal is straightforward. A banking charter eliminates the need for third-party partner banks to hold customer funds, extend credit, or process payments. An approval would cut costs, increases control, and in the case of a national charter, provide federal pre-emption that allows the holder to operate under a single set of rules across all 50 states rather than navigating a patchwork of state-level regulations.
Automakers like Ford, GM, and Stellantis all already operate captive finance subsidiaries that provide auto loans and leases. This includes Ford Motor Credit, GM Financial, and Stellantis Financial Services. An industrial bank charter would give each company more direct control over the funding and management of those loans, potentially lowering their cost of capital and expanding the financial products they can offer customers.
Trump Administration Opens Door To New Bank Entrants
The Trump administration has publicly encouraged new entrants into the banking system. Shortly after President Donald Trump began his second term, FDIC leadership called for increased competition in banking.
Jonathan Gould, the head of the Office of the Comptroller of the Currency, reinforced that position during a Blockchain Association event in December. “New charters ensure a diverse banking sector,” Gould said at the time. “Innovation, competition and fair access should always triumph over regulatory stagnation.”
The surge in applications comes during the most active period for new bank charters in more than 15 years.
Read also: Crypto ‘Extreme Fear’ Returns With Bitcoin At $75K – Retail Traders Say BTC Bulls Missed The Tech Rally
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