Flexible financing It aims to obtain an industrial bank charter in Utah to support its flexible lease payment solution Flex rent.
The company has submitted applications to Federal Deposit Insurance Corporation (FDIC) and Utah Department of Financial Institutions (UDFI) to establish a Utah-chartered industrial bank called Flex Bank, it said Friday (July 24). press release.
Flex Bank will issue Flex Rent and other Flex credit products directly, providing Flex customers with access to FDIC-insured deposit accounts and helping Flex expand access to flexible payment solutions that allow people to break large basic bills into smaller payments, according to the release.
The proposed bank subsidiary will operate nationally through digital channels, according to the statement.
Flex Co-Founder and CEO Shraji Liechtenstein The bank charter will allow the company to enhance its products by building directly on the foundation of federal deposit insurance as well as the regulatory oversight of federal and state banks, he said in the statement.
“Rent is the largest bill in most people’s lives, and often the least adapted to how they actually pay it,” Lichtenstein said. “This charter gives us a permanent foundation and organization to continue closing this gap.”
Since 2019, Flex has processed $40 billion in rents for 3.2 million renters across the U.S., according to the release.
In October Flex a partner With a real estate technology provider AppFolio To give that company’s property manager clients access to Flex Rent and enable residents to split their monthly income Rent payments Directly from their online portal.
Before that, Flex partnered with Multifamily industry Operating system entrance, Real estate Industry software platform provider RealPageand Property management Software provider Yardy.
PYMNTS reported in March that a new wave Bank charter The applications are driven by fintech companies’ desire to obtain licenses that allow them to perform specific financial functions.
On July 6, PYMNTS reported on this de novo interest Banking charters It rebounded after several quiet years. Regulatory guidance issued by the OCC in June attempted to provide applicants with greater clarity on licensing criteria, while federal regulators showed a renewed willingness to evaluate new applications on their merits.
