Mercury has formally applied for a U.S. national bank charter. In December 2025, the company submitted an application to the Office of the Comptroller of the Currency and, in parallel, applied to the Federal Deposit Insurance Corporation for federal deposit insurance.

For a fintech that has grown by partnering with regulated banks, this is a structural shift. It does not change how Mercury works today, but it clearly signals how the company sees its future.

From partner banks to direct regulation

Until now, Mercury has operated through FDIC-insured partner banks. Customer deposits sit at those institutions, while Mercury focuses on product, software, and customer experience. This model is common across U.S. fintech, especially for companies that want to move fast without carrying full banking regulation from day one.

A national bank charter would change that setup. If approved, Mercury would become a federally regulated bank, supervised directly by the OCC, and would hold deposits under its own FDIC insurance. That comes with significantly higher regulatory expectations, but also with more control over core banking activities.

The company has been explicit that nothing changes for customers during the review process. Accounts, products, and access remain exactly as they are while regulators assess the application.

Why now

Mercury’s announcement provides context for the timing. The company reports serving more than 200,000 customers, generating around $650 million in annualized revenue, and being GAAP profitable for three consecutive years. It also states that roughly one in three U.S. startups uses its platform.

Those numbers matter. Charter applications are evaluated not just on vision, but on operational maturity, financial stability, governance, and risk management. Filing at this stage suggests Mercury believes it can meet those expectations and sustain them under ongoing federal supervision.

What a charter unlocks, and what it demands

Operating as a national bank allows a company to offer deposit accounts directly, without relying on intermediary banks. That can simplify product architecture and open up longer-term strategic options. At the same time, it introduces continuous regulatory scrutiny, capital requirements, and compliance obligations that do not ease over time.

This is not a cosmetic upgrade. It is a commitment to running a regulated financial institution, not just a software platform connected to one.

Leadership and regulatory preparation

Alongside the application, Mercury announced the appointment of Jon Auxier as Chief Banking Officer and proposed CEO and President of the future bank, subject to approval. His background includes senior roles at regulated financial institutions and experience with bank operations.

That appointment reinforces the seriousness of the application. Regulators look closely at leadership depth and prior experience when evaluating new bank charters.

A long road, not a guaranteed outcome

Submitting an application starts a lengthy process. Approval is not automatic and can take many months. Regulators will review governance, compliance frameworks, financial resilience, and risk controls in detail.

For now, the filing places Mercury in a small group of fintechs attempting to transition from bank partnerships to full bank status. It is a strategic bet on durability, trust, and long-term control.

Key takeaways for fintech startups

Here are the practical lessons worth noting:

• Applying for a bank charter is a structural decision, not a branding move.
  
  
• Strong financial performance and operational maturity matter before approaching regulators.
  
  
• Partner bank models work well early, but they shape long-term constraints.
  
  
• Leadership experience becomes critical once regulation is central to the business.
  
  
• Regulatory timelines are long, and outcomes are never guaranteed.

If you are weighing similar strategic paths, Your Fintech Story helps founders assess regulatory options, trade-offs, and timing. Get in touch.