Avant has applied for an OCC bank charter to expand its credit products and offer additional financial services in the US.
Avant, an online lending platform, has applied for a de novo bank charter from the Office of the Comptroller of the Currency (OCC). If approved, the charter would allow Avant to expand its credit products, offer additional financial services, and operate under a single regulatory framework.
Avant seeks banking capabilities
Avant, which launched in 2013, currently provides credit cards and unsecured loans to middle-income consumers in the US. The company said the proposed charter would support the expansion of its existing credit offering and allow it to diversify into additional financial products. Avant also said the charter could reduce its cost of funds and simplify its operating model.
The application follows other fintech companies seeking OCC charters to obtain deposit insurance and broader banking capabilities. According to the OCC, 42 other firms have submitted applications for de novo OCC charters since January 2025. Of these, 27 applications have been approved, two denied, and one returned, while the remaining applications are under consideration.
Avant uses machine learning for credit assessment
Avant uses its proprietary CreditOS machine learning tool to assess customer creditworthiness. The system considers data beyond information typically used by credit bureaus when evaluating applications. Avant has served approximately 4.8 million unique customers since its founding, connecting them to more than USD 17.6 billion in credit through personal loans and credit cards. If approved, Avant Bank would allow the company to serve customers directly and offer banking products and financial health tools through an integrated digital platform. The proposed bank would also give Avant access to deposits as a funding source, which the company expects could reduce its cost of funds.
The remaining applications are under consideration. Of the applications received, 12 were for national trust charters and 15, including applications from Mercury and Nubank, were for full bank charters. Klaros Group, a financial services advisory and investment firm, consulted with Avant on its application.
