FinTech startup Figure applies for National Bank Charter from the OCC

By Pavithra R

Figure Technologies (Figure), a FinTech company leveraging AI, blockchain, and analytics to deliver innovative home equity release solutions and various other products that help improve the financial lives of customers has announced applying for national bank charter from the Office of the Controller of the Currency (OCC).

A national bank charter would enable Figure to offer a cohesive set of products and services nationwide, reduce its legal and regulatory costs and risks, focus its compliance efforts on the requirements of a single regulator, and offer its customers and business partners the security of dealing with a federally regulated and supervised national bank.

“Figure is pursuing the charter to reduce the complexity of our business – we’ll have over 200 state licenses next year without such a charter. By reducing complexity, we can leverage the technology efficiencies, we have to deliver financial solutions to traditionally underserved and underrepresented consumers, driving real financial inclusion,” said Mike Cagney, co-founder and CEO of Figure.

Figure has developed the ability to dramatically dwindle the time it takes to originate a loan through blockchain, and has significantly reduced costs in origination, servicing, financing, and capital markets execution. Figure is developing a suite of accessible and innovative payment and point of sale (POS) financing services built on blockchain that will bring economical & accessible financial services to underserved customers. The firm combines real-time data with macroeconomic insights to provide best-in-class investment opportunities.

Cagney said that C.D. Davies, Head of Lending at Figure, will lead the company’s efforts to obtain the bank charter and he will also become CEO of Figure Bank. Davies served as CEO of CitiMortgage and Head of Global Mortgage at Citibank and has also previously served as President of Home Loans at Capital One.

“This national bank charter will be instrumental in our efforts to continue to develop and deliver new financial products and services to communities across this country that really haven’t had access to affordable offerings. I look forward to working with the OCC as we move forward on this journey,” said C.D. Davies.

Founded in 2018, Figure is a web-based platform that manages digital assets and can be used for completing financial and investment transactions. Its mission is to build products that offer unprecedented speed and ease, powered by blockchain technology