Although most Americans have an account at a traditional bank, there are some, for various reasons, who cannot obtain an account.
About 18% of Americans are unbanked, meaning they don’t have a bank account or don’t actively participate in the banking system, according to the Federal Reserve Bank of Cleveland.
This may be because they have been marked out of the banking system, are not in a regular banking area, or have chosen to opt out of the banking system for their own reasons.
Fintech firms and online banks have tried to fill this role by making it easier for Americans who can’t get an account or find it difficult to get approved by a traditional bank to get a loan.
Operating on the fringes of regulated banks, one of these fintech lenders is about to enter banking. But others have raised the alarm.
OppFi is buying a bank
Bank consolidation has increased recently due to a favorable regulatory environment, TheStreet reports. Under US President Donald Trump, the time to approve deals has dropped from 17 months to three to four months on average, experts told TheStreet.
Amid the situation, fintech lender OppFi shared that it plans to buy Arizona-based BNC National Bank in a $130 million stock-and-cash deal, which will allow it to offer banking services, including checking and savings accounts, on a national scale.
Other banking issues
The combined deal will combine OppFi’s online lending platform with charter national bank BNC. Currently, OppFi has partnered with FinWise Bank, First Electronic Bank, and Capital Community Bank to provide its loan services.
“The dynamic combination of OppFi’s first digital platform and BNC’s national bank charter opens up significant opportunities for growth and product diversification,” OppFi CEO Todd Schwartz said in a statement.
Dan Collins, President and CEO of BNCC said the deal will increase the bank’s cash flow and provide better services to its customers.
“With greater financial flexibility and enhanced digital capabilities, we will be well positioned to elevate the customer experience and better serve our customers as their needs continue to evolve,” he said.
Controversy surrounding OppFi
Fintech lenders are not always viewed in the same light as regulated banks. Although it is generally easier to borrow from such lenders, another study conducted by the Harvard School of Business found that consumers who borrow from fintechs are more likely to go into debt and spend more than they can afford.
Meanwhile, a survey from the Federal Reserve Bank of Cleveland found that the unbanked don’t always find that alternative financial services like fintech firms are adequate substitutes.
So it’s no surprise that some have called for caution about the takeover of OppFi’s chartered bank.
This is not the first time OppFi has come under scrutiny.
Previous OppFi regulatory issues
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In 2021, OppFi agreed to reimburse Washington, DC, 1.5 million residents in a settlement with the city on interest rates, according to the Washington Post.
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OppFi has also been investigated by the Consumer Financial Protection Bureau as to whether its actions violate the Military Loan Act, which caps interest rates charged to military borrowers at 36%. The CFPB has decided not to take enforcement action against OppFi, a regulatory filing.
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OppFi has also been at loggerheads with California regulators over claims that it used a “bank-for-hire” partnership with FinWise to skirt the state’s interest rate limits. According to the ABA Banking Journal, a California state judge ruled in early April that state regulators cannot classify the partnership as illegal.
OppFi has also been criticized for skirting state usury laws to offer loans with interest rates that exceed state limits.
Concerns about non-bank lending practices
The National Consumer Law Center is the latest to sound the alarm bells about OppFi.
The nonprofit says lenders charge interest rates of up to 160% or more and the BNC National Bank deal will allow OppFi to ignore interest rate restrictions in 45 states.
“OppFi’s 160% interest rate is extremely dangerous. President Trump should not allow OppFi to become a national bank and spread the pain of high interest rates across the country,” said Lauren Saunders, senior attorney at the National Consumer Law Center.
While many states have limited interest rates for non-bank lenders like OppFi, federal law allows national banks to charge only the rate allowed in the state where the bank is headquartered. The practice allows non-bank lenders like OppFi to bypass state usury laws that cap interest rates, according to a study from the Federal Reserve.
While OppFi is currently headquartered in Chicago, where mortgage laws exist, BNC National Bank is located in Arizona, a state with zero interest rates.
Related: This big bank is busy opening branches
This story was first published by TheStreet on May 5, 2026, where it appeared first in the Economy section. Add TheStreet as a favorite source by clicking here.
