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Figure Technologies applies for bank charter

Figure Technologies applies for bank charter

Figure Technologies, a blockchain-based startup for providing loans against mortgage equity, has become the latest fintech player to apply for a bank charter.

The company, founded by former SoFi CEO Mike Cagney, is applying to the Office of the Comptroller of the Currency for a national bank charter.

Cagney tells Bloomberg that the national charter would mean Figure does not need to secure dozens of state licenses and would allow it to market a greater range of consumer products across the country.

SoFi - which Cagney left in 2017 after allegations of sexual improprieties at the firm - was granted conditional approval for a charter last month, following in the footsteps of Varo Money and Square.

Figure has originated more than $1 billion of home equity lines of credit since launching in 2018 and is planning to pilot a small-dollar instalment-loan product in January, says Bloomberg.

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