The Aporia · Fintech startups that hated banks are now becoming them

Liz writes about how fintech startups that once rejected traditional banks are now becoming them. Companies like SoFi, Klarna, PayPal, Chime, and Revolut, which previously criticized the banking industry, have either acquired or applied for bank licenses to secure cheaper funding through savings accounts and to tap into profitable lending markets as their customer base matures. This shift also reflects a need to comply with regulatory requirements that limit rapid growth in the financial sector.

Written by AI on 2026-09-22, from this article's own text only (the story summary below draws on all the coverage).

Story summary

In 2016, SoFi proclaimed the beginning of a "bankless world" with ads expressing disdain for traditional banks. However, SoFi, along with other fintech startups like Klarna, PayPal, and Robinhood, have now transformed into banking entities, reflecting a significant shift in their business strategies. For instance, Chime recently announced its acquisition of a bank, and Revolut has applied for a banking license. Initially, these companies viewed traditional banks with contempt but are now embracing banking to access cheaper funding sources necessary for the lucrative lending business. This move is driven by the desire to cater to younger tech-savvy customers who are transitioning from using services like YOLO brokerage and crypto trading towards more mature financial products such as mortgages.

Written for “Fintech Companies Transforming Into B…” on 2026-11-01, grounded in this article and the 0 other(s) covering the same event.

📰 Fintech Companies Transforming Into B…

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2026-10-16

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Liz Hoffman

22 article(s) here · 1 carrying a prediction

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2026-09-22 · assertive framing · Fintech startups that hated banks are now becoming them

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Liz’s view “This is the beginning of a bankless world,” proclaimed a 2016 ad for SoFi, which embodied the sneering disdain its generation of fintech startups had for the banks they were out to dethrone. asserted

they → proclaim → banks

Chime is the latest to bite the bullet, announcing the acquisition of a bank earlier this month. asserted

Chime → bite → bank

Revolut, whose CEO was once quoted saying “I just don’t like banks asserted

I → quote → banks

Block, which got a skinny banking license in 2021, wants another one. asserted

which → get → one

Contempt for banks was hard-coded into these companies’ DNA. asserted

Contempt → cod → DNA

Now they all want to be one. asserted

they → want → ?

First, the real money to be made in financial services is in lending, especially as the young tech-savvy customers they courted through YOLO brokerage, crypto trading, and money transfers grow up and want to buy a house. asserted

they → make → house

In the lending business, controlling your funding is important, and there’s no cheaper funding in the world than savings accounts. asserted

controlling → control → accounts

Relying on bank partners to fund the loans you want to make is risky, as LendingClub found out the hard way, which is why it bought a bank in 2020 and is now a full-fledged bank called Happen. asserted

it → rely → 2020

Regulators don’t like banks growing too quickly because they tend to screw up when they do, which is why Robinhood abandoned its pursuit of a license in 2019. asserted

Robinhood → like → 2019

A reminder: We had “Robinhood becomes a bank” on our 2026 Semafor Business bingo card. asserted

Robinhood → become → card

We might be early, but I don’t think we’re wrong. uncertain

we → think → ?

Fintech startups that hated banks are now becoming them

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