Mercury's Bid to Become a National Bank Signals Fintech's New Era

SAN FRANCISCO, CA – December 19, 2025 – Mercury, the financial technology company that has become a banking mainstay for a new generation of entrepreneurs, has taken its most definitive step yet to transition from a tech-industry disruptor to a pillar of the financial establishment. The company announced it has formally submitted applications to the Office of the Comptroller of the Currency (OCC) for a national bank charter and to the Federal Deposit Insurance Corporation (FDIC) for deposit insurance.

This move signals a pivotal evolution for the profitable fintech, which currently serves over 200,000 companies and individuals and boasts an impressive $650 million in annualized revenue. By seeking to become a federally regulated bank, Mercury is making a long-term play for stability and trust, aiming to move beyond its reliance on partner banks and bring its entire financial ecosystem under one regulated roof. For the thousands of startups and small businesses that rely on its platform, this quest for a charter represents a promise of enhanced security and permanence in a notoriously volatile sector.

“Becoming an FDIC-insured national bank aligns with our long-term vision and will allow Mercury to deliver a better customer experience at scale,” said Immad Akhund, co-founder and CEO of Mercury, in the company's announcement. “Once we receive regulatory approval, a charter will let us deliver greater stability, long-term confidence, and trust, while continuing to redefine what radically different banking means.”

The Strategic Pivot to Stability

Since its launch in 2019, Mercury has operated under the standard fintech model, offering checking and savings accounts by partnering with existing FDIC-insured institutions, namely Choice Financial Group and Column N.A. This model allowed it to innovate rapidly, layering sophisticated software for payments, invoicing, and expense management on top of traditional banking infrastructure. It proved wildly successful, with the company claiming that one in three U.S. startups now use its services.

However, the partner-bank model, while effective for rapid scaling, introduces layers of complexity and potential points of failure. Recent events in the industry, such as the 2024 bankruptcy of banking-as-a-service provider Synapse, have highlighted the risks, leaving some customers of other fintech platforms with frozen accounts and uncertainty. By pursuing its own charter, Mercury aims to eliminate this intermediary risk entirely.

If approved, the proposed Mercury Bank, N.A. would be formed as a wholly owned subsidiary of its parent company, Mercury Technologies, Inc., and be headquartered in Utah, a state known for its friendly regulatory environment for digital-forward banking. This structural change would mean customer deposits would be held directly by Mercury Bank, insured directly by the FDIC, and overseen directly by the OCC, placing the company on the same regulatory footing as the nation's largest financial institutions.

A Maturing Industry's Well-Worn Path

The path from fintech to a fully chartered bank is becoming a well-trodden, albeit challenging, one for the industry's most successful players. It represents a significant marker of maturity, signaling a shift from prioritizing rapid growth to ensuring long-term sustainability. Mercury follows in the footsteps of companies like Varo Bank, LendingClub, and SoFi, which have all navigated the complex regulatory process to become banks.

These precedents offer both a roadmap and a cautionary tale. The application process is notoriously rigorous, with regulators demanding robust business plans, significant capital reserves, and stringent risk management and compliance frameworks. Varo Bank, the first U.S. fintech to be granted a national bank charter in 2020, faced significant financial headwinds post-conversion before finding its footing. The journey is a multi-year commitment that tests a company's financial and operational discipline.

Mercury's decision is seen by industry experts as a positive indicator for the broader financial ecosystem. “Fintechs have become vital to how small businesses and entrepreneurs access the financial system,” noted Tim Mayopoulos, a Mercury board member and the former CEO of Fannie Mae. “Mercury’s decision to seek a national bank charter shows how innovation and oversight can reinforce one another — strengthening confidence in the system and expanding access to modern, technology-driven banking.”

Fortifying Leadership for a Regulated Future

To navigate this complex transition, Mercury has made a critical strategic appointment, naming Jon Auxier as its Chief Banking Officer and the proposed CEO and President of the future Mercury Bank. Auxier’s background is particularly notable; he previously served as the CFO of SoFi Bank and Corporate Treasurer of its parent company, where he was instrumental in leading SoFi's own successful application for a national bank charter.

This move signals that Mercury is not merely testing the waters but is executing a well-considered strategy, pairing its software-first DNA with seasoned banking and regulatory expertise. Auxier’s direct experience provides Mercury with an invaluable playbook for the arduous process ahead.

“Few fintechs have reached the level of financial strength and operational discipline to pursue a charter at this scale,” Auxier stated, emphasizing Mercury's readiness for the undertaking. His confidence is backed by Mercury's strong financial standing, including three consecutive years of GAAP profitability—a rare achievement in the fintech world that will be heavily scrutinized by regulators.

Redrawing the Battle Lines in Business Banking

Should Mercury succeed, its transformation into a national bank would significantly intensify competition in the business banking sector. Armed with its own charter, Mercury could leverage its direct control over its products and cost structure to offer more integrated services, potentially at more competitive rates, to its core demographic of startups and high-growth companies.

The greatest competitive advantage, however, may be trust. In a post-Silicon Valley Bank-era, founders and venture capitalists are more risk-averse than ever. The promise of direct FDIC insurance and federal oversight is a powerful selling point that distinguishes Mercury from the sea of fintechs still reliant on partner banks. This move directly addresses the market's demand for security, positioning Mercury not just as an innovative platform but as a durable financial partner.

For now, the company has assured its customers that nothing changes. The application process is the first step in a long journey of engagement with regulators, and Mercury will continue to operate through its partner banks while laying the groundwork for its future as a standalone institution. This strategic pursuit of a charter is the logical culmination of its founding mission: to build a financial institution designed to last for generations, merging the agility of software with the enduring stability of a bank.