Propel Holdings has received regulatory approval from the OCFI to establish Propel International Bank, a wholly owned subsidiary of Propel.

Following this development, Propel Bank will be licensed as an International Financial Entity under the oversight of the OCFI, representing a significant advancement in Propel’s fintech-bank partnership platform.

Upon launch, Propel Bank is expected to focus on providing core consumer lending services such as underwriting, compliance, and customer service to existing and future bank partners. Notably, Propel Holdings will not become a bank holding company.

The Development and Operationalization of the Bank

In line with an official press release from the company, the establishment of Propel Bank is anticipated to bring long-term strategic benefits. These include potential for product and service diversification (the launch of Propel Bank paves the way for additional banking products and services subject to regulatory approval) and expanded access to markets (with its IFE license, Propel Bank aims to enhance its presence in both existing and new markets).

Propel Bank signifies a key milestone in the company’s strategy to become a trusted partner by enhancing its platform, expanding its reach, and exploring growth opportunities. Leveraging the company’s AI-powered technology and operational infrastructure, Propel Bank is expected to be operational by the first half of 2026.

The approval from OCFI builds upon several years of investment made by Propel in building out its banking infrastructure. OCFI’s comprehensive evaluation of Propel’s governance, compliance, and operational readiness underscores confidence in the company’s ability to manage a fully regulated financial institution. Designed for modern fintech development, the IFE regime combines rigorous US regulatory oversight with necessary flexibility for technology-driven financial services. The IFE will enable Propel Bank to deliver secure and scalable servicing capabilities as it expands its financial ecosystem.