Albert, a fintech that offers instant lines of credit, is seeking to establish a Utah-chartered industrial bank.
The company applied with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corp. on July 20 to charter Albert Bank and obtain federal deposit insurance. The proposed bank would operate as a wholly owned subsidiary.
Albert, founded in 2015, offers consumers a suite of digital financial tools through its mobile app, including budgeting and automated savings tools, a consumer checking account marketed as Albert Cash, and credit monitoring and identity-theft protection through Albert Protect.
The company said the bank’s primary purpose would be to provide traditional banking services directly to Albert users “at lower costs and with better service” than it can currently provide.
The proposed bank would be based in the Salt Lake City area but operate nationwide. No branches are planned. Products would be distributed primarily through Albert’s app and website, while the bank’s sole physical office would not be open to customers or hold cash or negotiable instruments.
Albert would remain the bank’s sole shareholder and organizer. The application states that Albert may restructure its corporate documents to address whether certain shareholders could be presumed to control the company under FDIC regulations.
The public application does not identify the shareholders or explain the proposed governance changes.
The application identifies Raymond Dardano as the bank’s proposed CEO. Dardano, who recently led Pitney Bowes Bank, would also serve on the bank’s five-member board, which includes Albert CFO Colby Blitz.
The remaining three directors would be independent outsiders, with one serving as chairman.
Albert said it would own 100% of the bank and would not issue debt to fund the initial capitalization. The parent company would cover all organizational expenses, including legal and consulting costs, technology development, facilities and employees hired before the bank opens.
The filing does not disclose how much capital Albert plans to contribute.
Albert said the bank should reach profitability before the end of its de novo period and maintain substantial liquidity, though no financial projections were included in the public filing.
Albert’s application makes clear that the bank would offer deposit and lending products, but it provides little public detail about either side of the balance sheet. Confidential exhibits include operating processes for deposit products, loan products, and a credit policy.
The CRA plan states that Albert Bank would not principally originate closed-end mortgages, small-business loans, small-farm loans or automobile loans. Any such lending would occur only on an incidental or accommodation basis.
It is unclear which current partner-bank relationships Albert would retain after the charter is approved.
Albert plans to support affordable housing and low- and moderate-income communities through loans and lines of credit to community development financial institutions, investments, deposits at minority depository institutions, charitable contributions and employee volunteerism. The names of community groups and financial institutions Albert has contacted were redacted.