Fintech acquires bank to gain banking charter license
Newly formed entity aims to provide banking services to SMBs
SmartBiz, a fintech providing loans to small and medium-sized businesses, has completed its acquisition of United Community Bancshares and its subsidiary, Centrust Bank.
The acquisition, approved by the Office of the Comptroller of the Currency and the Federal Reserve Bank of Chicago, transitions SmartBiz into a full-fledged banking institution operating under the newly established SmartBiz Bancshares, according to SmartBiz’s March 17 release.
Established in 2006, Centrust Bank is a Chicago-based community bank with a strong emphasis on business lending to small and medium-sized businesses.
The bank offers a comprehensive suite of deposit, lending and online banking services, including both conventional and SBA loan products.
Post-acquisition, Centrust Bank will operate as a division of SmartBiz, ensuring the continuity of small business banking services. The existing team at Centrust Bank will integrate into SmartBiz Bank, with Gerard Buccino, the former chief executive of Centrust Bank, assuming the role of president of SmartBiz Bank.
This acquisition represents a trend of fintech companies integrating with traditional banking institutions.
In 2022, SoFi acquired Golden Pacific Bank for $750 million to become a bank and, in 2018, online lender Tandem acquired Harrods Bank for $103 million to become a bank.
