Pub. 7 2019 Issue 3

Read on to learn more about the current state of banking and how to successfully start a de novo bank. 1 Why Start a Bank? With multibillion-dollar banking companies, the banking industry is an extremely competitive one. As you know, it is also highly regulated. This has only increased after the recession and housing bubble pop that rocked the industry a decade ago. But it’s important to know that the banking industry looks very different today than it did ten years ago. Companies such as Chime, Aspiration, and Empower are providing significant competition in the online/mobile banking world. The popularity of these competitors points not to the failure of traditional banking—but to the value of alternative de novo banks created by groups who want to build something new. Creating a de novo bank these days promises to be a more streamlined. It still involves intensive work and patience—approval can come up to eight months after filing the application, with a further three months of pre-filing and preparation—but current conditions for bank startup investment are finally conducive to success. THE ULT IMAT E GU I DE TO Starting a New Bank Starting a bank often seems like a complicated and almost impossible task. In this day and age, that conception is false. With banking experience and modern technology, anyone with ambition has the opportunity to open a de novo bank, and succeed while doing so.