Affirm Seeks Banking Charter as Capital One Moves to Acquire Brex in Fintech Consolidation Wave

Buy-now-pay-later lender Affirm has applied for an industrial loan company charter, marking the latest fintech firm to pursue direct banking powers, while Capital One announced plans to acquire corporate card startup Brex, according to developments discussed in the February 2026 edition of the Fintech Recap podcast.

The moves signal a continued blurring of lines between traditional banking and fintech operations, with implications for how finance leaders evaluate treasury management and corporate spending platforms. For CFOs already managing relationships with multiple fintech vendors, the regulatory shift and consolidation trend raises questions about counterparty stability and the long-term viability of standalone fintech business models.

Affirm's pursuit of an ILC charter would allow the company to take deposits and make loans directly, without relying on bank partnerships that have proven fragile for other fintech firms. The industrial loan company structure—a specialized bank charter available in a handful of states—has historically been used by companies like General Electric and BMW to support their financing operations. If approved, Affirm would join a small group of fintechs that have successfully navigated the years-long regulatory approval process to operate as chartered institutions.

The Capital One-Brex deal represents a different strategic calculus: a major bank acquiring a fintech darling that built its reputation on serving startups and growth companies with corporate cards and expense management software. Brex, which launched in 2017 targeting venture-backed companies that traditional banks often rejected, has expanded into treasury and bill pay services. The acquisition would give Capital One immediate access to Brex's technology platform and customer base of high-growth companies, while providing Brex with the balance sheet and regulatory infrastructure of an established bank.

The podcast, hosted by Jason Mikula of Fintech Business Weekly and Alex Johnson of Fintech Takes, also covered several policy developments with potential impact on corporate finance operations. The hosts discussed renewed proposals for a 10% credit card interest rate cap and the re-emergence of the Credit Card Competition Act, questioning whether these legislative efforts represent serious policy initiatives or negotiating leverage in broader financial services debates.

Adding to the regulatory uncertainty, Coinbase CEO Brian Armstrong's recent comments on crypto market structure legislation drew criticism from the podcast hosts, who characterized his position shift as a "rug pull" on previous industry consensus around regulatory frameworks. The crypto exchange has been among the most vocal advocates for clear rules governing digital asset trading, making Armstrong's apparent reversal notable for finance teams evaluating cryptocurrency treasury strategies.

The podcast also touched on the HBO drama "Industry" and its portrayal of banking and fintech, though the hosts warned of spoilers for viewers. The discussion reflects growing mainstream cultural attention to fintech business models and their sometimes-fraught relationship with traditional finance.

For corporate finance leaders, the dual trends of fintechs seeking bank charters and banks acquiring fintech companies suggest the experimental phase of financial technology may be giving way to a more consolidated, regulated industry structure. The question facing CFOs is whether this consolidation will preserve the innovation and user experience that made fintechs attractive alternatives, or simply fold them into the traditional banking system they initially disrupted.