Fintech lender OppFi eyes $130m purchase of BNC National Bank amid regulatory scrutiny
Consumer advocates warn the deal could allow the firm to bypass state usury laws and charge rates exceeding 160 per cent nationwide
Fintech lender OppFi has announced plans to acquire Arizona-based BNC National Bank in a $130 million stock-and-cash transaction. The proposed merger seeks to fuse OppFi's digital-first lending operations with BNC's national bank charter, a move that would enable the provision of checking and savings accounts on a national scale.
OppFi CEO Todd Schwartz described the combination as transformative, noting that it unlocks significant opportunities for growth and product diversification. Meanwhile, Dan Collins, president and CEO of BNC, stated that the deal would increase the bank's capital holdings and provide enhanced digital capabilities to better serve its customer base.
However, the transaction has drawn sharp criticism from consumer advocates and regulators who warn that the acquisition could allow OppFi to circumvent state usury laws. Critics argue that by leveraging federal preemption laws applicable to national banks, the combined entity could offer loans with interest rates exceeding 160 per cent in 45 states.
The National Consumer Law Center has voiced strong opposition to the move. Lauren Saunders, a senior attorney at the centre, called the lender's 160 per cent interest charges outrageous and urged President Donald Trump to prevent OppFi from becoming a national bank. She warned that the deal would spread high interest rate pain across the country.
This scrutiny comes as OppFi faces a history of regulatory friction. In 2021, the firm agreed to refund Washington residents $1.5 million in a settlement regarding high interest rates. Additionally, the company has faced investigations by the Consumer Financial Protection Bureau and California regulators over its lending practices and the use of so-called rent-a-bank partnerships.
The deal coincides with a broader trend of accelerated bank consolidation under the current U.S. administration, where approval times for mergers have reportedly dropped from 17 months to just three to four months. Despite this faster regulatory environment, the specific timeline for approval of the OppFi-BNC merger remains unconfirmed, and it is unclear if regulators will challenge the deal given the heightened scrutiny on fintech acquisitions.
