Avant applied to US regulators to establish Avant Bank, a proposed national bank that would bring deposit funding into its consumer-lending business. The Chicago-based company announced applications to the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation on 18 September. The proposal remains subject to regulatory approval.
Founded in 2012, Avant said it had served approximately 4.8 million customers and connected them with more than $17.6 billion in credit. Its existing products include personal loans and credit cards. Those products are issued through WebBank, its longstanding banking partner.
DEPOSITS AND DIRECT CONTROL
Avant said deposits would diversify its funding and reduce borrowing costs. Its current financing combines debt facilities, loan sales and lending retained on its balance sheet.
In interviews with American Banker, executives outlined plans to begin with cards and personal loans before adding current and savings accounts. The company chose to seek a new charter rather than acquire an existing bank.
LEADERSHIP AND APPROVALS
Chief business officer Charles Whittaker would lead the proposed bank as chief executive. Kevin Friedrich was named proposed chief financial officer, with Margaret Hermes proposed as president and chief operating officer.
A charter would give Avant more direct control over customer relationships and its lending process. Regulatory decisions on the applications are the next condition for establishing the bank; the filing announcement does not constitute permission to begin banking operations.