While many Americans have an account at a traditional bank, there are some who, for various reasons, cannot get an account.
About 18% of Americans are unbanked, meaning they do not have a bank account or do not fully participate in the banking system, according to the Federal Reserve Bank of Cleveland.
This could be because they have been flagged in a bank’s system, are not in an area served by traditional banks, or have chosen not to participate in the banking system for personal reasons.
Financial technology companies and online banks have tried to play this role by making it easier for Americans who can’t get an account or who have difficulty getting approved for a loan from a traditional bank.
One of these fintech lenders, which operates outside of regulated banks, is about to go into banking. But some have set off alarm bells.
OppFi is buying a bank
Bank consolidation has been on the rise recently due to a favorable regulatory environment, TheStreet reported. Under US President Donald Trump, the approval time for agreements has been reduced from 17 months to three or four months on average, experts told TheStreet.
Amid this climate, fintech lender OppFi has shared that it plans to buy Arizona-based BNC National Bank in a stock and cash deal worth $130 million, allowing it to offer banking services, including checking and savings accounts, on a national scale.
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The combined deal will merge OppFi’s online lending platform with BNC’s national banking charter. Currently, OppFi partners with FinWise Bank, First Electronic Bank, and Capital Community Bank to offer its lending services.
“The transformative combination of OppFi’s digital platform and BNC’s national banking charter opens 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 would increase the capital the bank holds and provide better services to its customers.
“With greater financial flexibility and enhanced digital capabilities, we will be well positioned to improve the customer experience and better serve our customers as their needs continue to evolve,” he said.
Controversy around OppFi
Fintech lenders are not always viewed in the same way as regulated banks. While it is often easier to borrow from these lenders, a Harvard Business School study found that consumers who borrow from fintechs are more likely to go into debt and spend beyond their means.
Meanwhile, a survey from the Federal Reserve Bank of Cleveland found that the unbanked don’t always find alternative financial services, such as fintech companies, to be an adequate substitute.
Therefore, it is not surprising that some have urged caution in the face of OppFi’s expected acquisition of a licensed bank.
This is not the first time OppFi has been analyzed.
OppFi’s Past Regulatory Issues
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In 2021, OppFi agreed to refund Washington, D.C. residents $1.5 million in a settlement with the city over its interest rates, according to The Washington Post.
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OppFi has also been investigated by the Consumer Financial Protection Bureau over whether its practices violate the Military Lending Act, which caps the interest rate given to military borrowers at 36%. The CFPB decided not to take enforcement action against OppFi, regulatory filings show.
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OppFi has also been fighting California regulators over claims that it uses a “rental bank” partnership with FinWise to circumvent the state’s interest rate caps. According to the ABA Banking Journal, a California state judge preliminarily ruled in early April that state regulators could not classify the partnership as illegal.
OppFi has also been criticized for circumventing states’ usury laws to offer loans with interest rates that exceed state limits.
Concern over non-bank lending practices
The National Consumer Law Center is the latest to sound the alarm regarding OppFi.
The nonprofit says the lender charges interest of up to 160% or more and that the deal with BNC National Bank would allow OppFi to ignore interest rate caps in 45 states.
“OppFi’s 160% interest charges are outrageous. 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 staff attorney at the National Consumer Law Center.
While most states have an interest rate cap for nonbank lenders like OppFi, federal law allows national banks to charge only the rate allowed in the state where the bank is based. This practice allows nonbank lenders like OppFi to circumvent state usury laws that cap interest rate caps, according to a Federal Reserve study.
While OppFi is currently based in Chicago, where there are rules on loan limits, BNC National Bank is located in Arizona, a state that does not cap interest rates.
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This story was originally published by TheStreet on May 5, 2026, where it first appeared in the Economy section. Add TheStreet as a preferred source by clicking here.