Flex Files for Bank Charter to Fund Rent Payments

Since 2019, Flex has processed $40 billion in rent for 3.2 million renters across the United States. The company has partnered with property management software providers AppFolio, Entrata, RealPage and Yardi to integrate its split-payment option into their platforms.

The move comes as a wave of fintech companies seek to secure bank charters that allow them to perform financial functions like lending and deposit-taking directly, rather than relying on third-party banks. The Office of the Comptroller of the Currency issued guidance in June aimed at providing clearer licensing standards for de novo applications, and federal regulators have signaled a renewed willingness to evaluate new charters on their merits.

A Utah industrial bank charter would let Flex hold deposits and issue credit on its own books, removing the need for a bank partner to originate the loans. The company would also gain access to the federal deposit insurance system, which could lower its funding costs and give customers a guaranteed account.

Flex did not specify a timeline for approval. The FDIC and Utah regulators will review the application under existing standards for industrial banks, a charter type that has drawn scrutiny from some lawmakers concerned about mixing commerce and banking.