Affirm Seeks Banking Charter as Capital One Moves to Acquire Brex in Fintech Power Plays

Affirm Seeks Banking Charter as Capital One Moves to Acquire Brex in Fintech Power Plays

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 a fintech industry podcast released this week.

The moves signal a continued blurring of lines between traditional banking and fintech operations, with implications for how finance teams evaluate treasury management and payment partnerships. For CFOs already managing relationships with both banks and fintech providers, the consolidation raises questions about vendor concentration and the stability of emerging payment platforms.

The Affirm charter application, if approved, would allow the consumer lending platform to operate more like a traditional bank while maintaining its technology-focused business model. Industrial loan companies occupy a peculiar space in financial regulation—they can take deposits and make loans but face different oversight than conventional banks. It's the same structure used by companies like Square (now Block) to gain banking powers without becoming full-fledged banks.

Here's the thing everyone's missing: this isn't just about Affirm wanting to cut out the middleman on funding costs. An ILC charter fundamentally changes the conversation Affirm can have with merchants and, more importantly, with the finance teams that approve those merchant relationships. (Treasury departments have always been more comfortable with "banks" than "fintech platforms," even when the distinction is mostly semantic.)

The Capital One-Brex deal is perhaps more straightforward in its implications, though no less significant. Brex, which built its business offering corporate cards and expense management to startups, would join Capital One's existing commercial banking operations. The acquisition would give Capital One a stronger foothold in the venture-backed company market while providing Brex with the balance sheet and regulatory infrastructure of a major bank.

For finance leaders, this is the conversation they're going to have with their teams next week: "So, our corporate card provider is now owned by a bank. What changes?" The answer—probably not much immediately, but the long-term product roadmap just got a lot murkier—is less satisfying than anyone wants.

The developments were discussed on the February 2026 episode of Fintech Recap, a monthly podcast featuring fintech analyst Jason Mikula and Alex Johnson of Fintech Takes. The episode also covered recent crypto market structure debates and proposed credit card interest rate caps, suggesting a busy regulatory environment for financial services in early 2026.

The timing is notable. Both moves come as fintech companies face increased scrutiny over their "banking-as-a-service" partnerships and as traditional banks look to acquire technology capabilities rather than build them internally. The Federal Reserve and other regulators have spent the past year tightening oversight of bank-fintech partnerships, making direct charter applications and outright acquisitions more attractive paths forward.

What to watch: Affirm's charter application will face regulatory review that could take months or longer. The Capital One-Brex deal terms weren't disclosed in the podcast, leaving questions about valuation and integration timeline unanswered. For CFOs evaluating corporate card and expense management platforms, the message is clear—the vendor landscape is consolidating, and the line between "fintech" and "bank" continues to dissolve.