The Fintech Charter Push: A New Executive Order Could Reshape Bank-Fintech Partnerships (Part 2 of a 2-Part Series)
C.D. DeSantis BFA & A.A.S. August 10, 2026
What the Executive Order Actually Does
On May 19, 2026, President Trump signed Executive Order 14405, titled “Integrating Financial Technology Innovation Into Regulatory Frameworks.” The order sets a clear policy goal; to streamline regulatory processes, reduce unnecessary barriers to entry, and encourage collaboration between fintech firms, federally regulated financial institutions, and federal financial regulators. [1]
The mechanics are specific. Within 90 days, the head of every federal financial regulator must review existing regulations, guidance, supervisory practices, and application processes to identify anything that unduly impedes fintech firms from partnering with federally regulated institutions, a list that includes insured depository institutions, credit unions, broker-dealers, investment advisers, and futures commission merchants. The same review must identify rules that could be amended to streamline charter, deposit or share insurance, and licensing applications for eligible fintech firms. Within 180 days, each regulator has to take concrete steps based on what that review finds. [1][2]
The order also asks the Federal Reserve Board, which is notably not defined as a “federal financial regulator” under the order, to evaluate whether nonbank fintech firms, uninsured depository institutions, and direct participants in instant payment networks should gain access to Reserve Bank payment accounts and services and if so, how they may proceed to do so. The response to that question, more than any other piece of the order, will determine how far fintechs could eventually operate outside the traditional bank relationship altogether. [2][3]
Why This Order, Why Now
The order builds on Executive Order 14178, signed at the start of the administration, which directed agencies to identify digital asset regulations and guidance that should be rescinded or modified. Together, the two orders describe a consistent posture: to reduce friction for fintech firms and digital-asset companies operating inside, or trying to enter, the regulated banking system. [2]
That posture arrives at a moment when bank-fintech partnerships are already under scrutiny for a different reason. In 2023, the OCC, FDIC, and Federal Reserve issued joint guidance tightening expectations for third-party risk management, in response to a string of enforcement actions and at least one high-profile partner-bank failure that exposed gaps in the oversight of fintech relationships. The new order's directive to identify rules that “unduly impede” those same partnerships puts that 2023 guidance squarely in regulators' sights, and banks that built compliance programs around it should expect the ground to shift.
What's at Stake for Banks and Credit Unions
The order cuts two ways, and which way matters most will depend on the institution reading it.
Easier partnerships could favor banks that want to be the bank-as-a-service provider of choice. If application friction genuinely drops, banks positioned to partner well, with strong compliance infrastructure and fast onboarding, have an opening to capture more of that fintech volume rather than lose it.
Easier charters could mean fewer fintechs need a bank partner at all. The same streamlining that helps a bank land a fintech partnership also helps that fintech skip the partnership entirely and become a directly chartered competitor, faster than in prior years. [2]
Federal Reserve payment access is the biggest open question. If nonbank fintech firms eventually gain direct access to Reserve Bank accounts and real-time payment networks, the infrastructure layer that has quietly anchored bank and credit union relevance could become available to institutions that carry none of the same capital or regulatory burden. The Federal Reserve's related proposal accepted public comment through July 27, 2026, and the responses exposed the fault line clearly. Community bank groups argued that the Fed shouldn't hand payment-system access to institutions that sit outside the prudential oversight banks operate under. Fintech groups countered that the proposed account is still too narrow to matter, since it excludes the Fed's ACH network that carries payroll, bill pay, and account funding. The Fed has said it expects the pause on pending nonbank account applications to lift by December 31, 2026, but has not set a date for finalizing the proposal itself. [3][6]
Reaction has already split along familiar lines. Consumer advocates have warned the order could ease so-called rent-a-bank arrangements that let nonbank lenders bypass state interest rate caps through a bank affiliation, while community bank groups have urged regulators to weigh stablecoin, master account, and charter changes together rather than in isolation. [4][5][7][8]
Key Deadlines to Watch
Two dates on the calendar will determine how quickly any of this becomes real:
Mid-August 2026: the 90-day deadline for every named federal financial regulator to complete its review and identify specific rules, guidance, and application steps that may be affected. [6]
Mid-November 2026: the 180-day deadline for regulators to act upon what that review found, whether through proposed rulemaking, revised guidance, or updated supervisory expectations. [6]
Expect the period between those two dates to bring the real substance: proposed rule language, agency statements, and likely a wave of public comment activity from banks, credit unions, fintechs, and consumer groups all trying to shape the outcome.
How Commercial Bankers and Credit Unions Should Respond
Waiting for the final rules before reacting means responding to decisions already made. A few steps make sense now:
Track agency-specific action, not just the order itself. The order sets direction, but the OCC, FDIC, NCUA, and Federal Reserve will each interpret and implement it differently. Watching agency announcements individually matters more than watching the White House.
Revisit your own bank-fintech partnership strategy. If application friction is genuinely going to ease, this is a reasonable moment to evaluate whether becoming a stronger bank-as-a-service partner is a better competitive position than treating every fintech as a future competitor.
Watch for changes to third-party risk management guidance. The 2023 interagency guidance shaped how most institutions structure fintech partnerships today. Any revision to it will directly affect compliance programs built around the current standard.
Engage through trade associations during comment periods. ICBA, ABA, the FTA and state credit union leagues are already weighing in, and formal comment periods on any resulting rulemaking are the most direct way to influence how these changes get implemented. [5]
Prepare for faster-moving competitors either way. Whether the order ultimately helps banks partner better or helps fintechs charter faster, the institutions that move early, on strategy, on technology, and on regulatory engagement, will be better positioned than those that wait for certainty that may not arrive on a convenient timeline.
Conclusion
Executive orders set direction, not outcomes. The rules that actually change bank-fintech partnerships will come out of agency rulemakings over the next several months, shaped by the same competing pressures visible in the order's first week: banks and credit unions asking for a measured, coordinated approach, and fintechs pushing for faster access to the charters and partnerships that have historically taken years to secure. Commercial bankers and credit unions who track this process closely, and who use the window before November to strengthen their own partnership and compliance posture, will be in a far stronger position than those who wait to see what regulators decide.
Resources and Sources
Federal Register, Integrating Financial Technology Innovation Into Regulatory Frameworks (Executive Order 14405)
Carlton Fields, Coming Back to Fintech Innovation: Another Executive Order
Jones Day, Executive Order Directs Regulators to Streamline Fintech Access to Financial Services,
Consumer Finance Monitor, White House Executive Order Signals Major Shift in Federal Policy for Fintechs and Payment Systems
Independent Community Bankers of America, ICBA Statement on Executive Order on Financial Technology Regulation
Norton Rose Fulbright, Trump Executive Order Directs Federal Financial Regulators to Open Doors for FinTech
Independent Community Bankers of America, ICBA Reiterates Strong Concerns with Federal Reserve Payment Account Proposal
Financial Technology Association, FTA Urges Federal Reserve to Include ACH Access in New Payment Account Framework
Expert Business Development LLC has no relationship with nor endorses any of the aforementioned entities. Links provided to resources are strictly for informational purposes. This article is provided for informational purposes only and does not constitute legal advice.