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| Happy Friday, Fintech Takers! We’re doing something new today. Every once in a while, we will publish a guest essay here at Fintech Takes. This is beneficial for me (gives my fingers a break), but, more importantly, I believe it’s beneficial for you because it provides direct exposure to expert ideas and opinions that may differ from my own. Today’s essay is a guest essay, but with a new twist — it’s anonymous. I’ll be honest with you: As a general rule, I'm not a huge fan of anonymity on the internet. I believe it provides a level of safety that encourages excessive amounts of snark and downright meanness. Plus, these days, you can never really be sure that it’s an actual human on the other side of the exchange, rather than a bot. However, there are valid exceptions to my general rule, and today’s guest falls into one of them: He runs a large community bank. Our anonymous bank CEO wanted to write a piece about how to get (and keep) a bank charter, which is the question of the moment. I was delighted to receive a guest essay pitch on this topic and I wanted the author to be as candid as possible in his writing, which is why I am allowing it to be published anonymously. I can confirm that our anonymous bank CEO is, in fact, a real person, not a bot. And more importantly, his essay is not snarky or mean. In fact, while you might assume that a bank CEO writing about the surge of new bank formation in the U.S. would be writing with the intention to criticize new market entrants or to encourage regulators to slam the bank charter window shut, this essay is not that. It’s a simple, fair, and rather welcoming piece of advice for how aspiring bank charter holders can increase their odds of succeeding over the long term. Plus, it's framed around The Simpsons, which is the kind of hook I can’t pass up. So, take it away, Anonymous Bank CEO! - Alex Was this email forwarded to you? The Simpsons RuleEver wondered what it really takes to run a bank? The answer might be found in Springfield; not on Wall Street. In today’s regulatory climate, The Simpsons Rule offers a surprisingly effective guide for aspiring bank owners. There are many compelling reasons to become a bank, and the “political window” to apply for a de novo bank charter — or acquire an existing one — is wide open right now. The current administration and several regulatory agencies have signaled a desire to consider and approve applications faster than in previous years. For example, in the last 18 months, the OCC has affirmed its support for the formation of de novo banks, allowed national trust bank charters to be repurposed, expressed openness to novel technologies and business models, and initiated rulemaking under its new remit to license payment stablecoin issuers. Unsurprisingly, bank charter applications have surged in the U.S., and the applicants aren’t just the traditional faces of financial services. Fintech companies, neobanks, crypto firms, stablecoin market participants, and even car manufacturers (again!) are among those filing applications to become or start banks. Many of these applications have already been conditionally or fully approved. But who should be entrusted with the power — and responsibility — that comes with bank ownership and management? Here’s my take. The Simpsons Distribution in Financial Services Executives in financial services fall across a spectrum — a “Simpsons curve,” if you will — with four major categories: 
From my experience, most financial services executives fall into the Marge or Bart categories. Some of the greatest innovations in technology — including in fintech — have come from Barts (and maybe even a few Mr. Burnses). There’s also a correlation between companies with sky-high valuations and the right side of the Simpsons curve. Many extremely successful people, especially in tech (think Mark Zuckerberg, Elon Musk, Steve Jobs), tend to veer right on the Simpsons curve. It’s no surprise that many fintech founders do, too. Indeed, they’re often encouraged to do so by the venture capitalists who fund them. The Simpsons Rule for Bank Charters Here’s the rule for obtaining — and successfully maintaining — a bank charter: You need to be Lisa Simpson. That’s it. It’s not complicated. Do the right thing. Protect consumers. Play by the rules. Be compliant. The Lisa Simpson ethos is the only sustainable path forward. A hyper-compliant culture, built on rigorous controls and zero shortcuts, is not just a regulatory hurdle. It is the prerequisite for earning and maintaining long-term market trust. If you make a mistake, own it, and explain how it happened and how you’ll fix it. It might be expensive. Maybe you messed up a fee disclosure, but no one complained, so you’re tempted to think no real harm was done? Rebate the money anyway. If you spot a compliance violation in your internal review, document and explain it. Don’t sweep it under the rug. But what if, as an entrepreneur or fintech founder, you’re not a Lisa Simpson by nature?
Pretty simple, really. Here’s the tough news: being a Marge isn’t enough to truly earn the title of “responsible bank custodian”. In a complex, interconnected system, even typically well-intentioned Marges create systemic risk through their capacity for “flexibility” in dire situations. The market regulators demand that structural controls supersede personal judgment, every single day. You might be like Bart, laughing at this advice or viewing it as old-fashioned. But Lisa Simpson is exactly the kind of person you need running a bank: ethical, disciplined, cautious but principled. She’d be hyper-compliant and promote a culture of rigorous controls, strong governance, and doing things the right way, with zero shortcuts. Banks that operate in this way have more regulatory flexibility across changing political and macroeconomic environments. At the end of the day, having a Lisa Simpson culture is a true competitive differentiator in banking. It’s the hidden engine of business success: a culture of integrity drastically reduces hidden risk, builds customer loyalty that others can't touch, and creates a stable platform for growth. Happy charter hunting! “A charter, Smithers! Fetch me the papers. This will be easier than crushing a local business.” Author’s note: If the Simpsons references contained herein do not mean anything to you, you are too young for a bank charter. MORE QUESTIONS TO PONDER TOGETHER Big news for the endlessly curious (yes, you): I’m collecting your fintech questions on a rolling basis. What’s keeping you up at night? What great mysteries in financial services beg to be unraveled? Think of it this way, if a stranger is a friend you just haven't met yet, your question is a Fintech Takes conversation waiting to happen. One that could headline a Friday newsletter or be answered in an upcoming Fintech Office Hours event. Drop your question here, whenever inspiration strikes! WHERE I'LL BE There are some great virtual events coming up soon, and planning for the fall fintech season is well underway. Here's where I'm planning to be in September. ✈️ FinovateFall | September 9-11 | New York CityMy can't miss fall conference! September in New York is glorious and the fintech conversations will be too. ✈️ Cash Flow Intelligence Summit | September 10 | New York CityNova Credit has rebranded this from the "Cash Flow Underwriting Summit" to the "Cash Flow Intelligence Summit." Come find out why. ✈️ FDATA Global Open Finance Summit | September 17 | TorontoThis will be my first time at an FDATA event and my first time back to Toronto in a long time. If you work in open banking in Canada and want to yell at me for my bad takes in the past, this is your chance! ✈️ AI-Native Banking & Fintech Conference | September 29 | Salt Lake CityThe name of this event is a mouthful, but the content and networking are both A+. Thanks for the read! Let me know what you thought by replying back to this email. — Alex | |||||||||||
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