LendAPI Partner Podcast with Simon Darchis (FinWise Bank) on What Makes a Bank Say Yes to a Fintech

In this episode, host Timothy Li (CEO, LendAPI) talks with Simon of FinWise Bank Corp about what actually happens behind the scenes of a bank-fintech sponsorship — why some fintechs get onboarded and others get turned away, why high-interest short-term loans aren't always the villain they're made out to be, and why so many Buy Now, Pay Later companies are racing to get their own bank charters right now. Simon's path runs from Paris to McGill University to Cross River Bank to FinWise, where he's spent nearly a decade building out the bank's fintech sponsorship and payments infrastructure. He and Tim get into the real economics of subprime lending, what a "dream" fintech partner looks like from a bank's perspective, and why owning your own charter isn't the shortcut some fintechs think it is. ## What You'll Learn: - Why high-interest short-term loans, while expensive, can be genuinely life-changing for subprime borrowers — and why overdraft fees are often the worse alternative - What FinWise actually evaluates before onboarding a fintech: product design, compliance depth, founding team, and access to capital - Why some sponsor banks onboard 30+ fintechs a year while others do fewer than 10 — and why "fintech as a gold mine" thinking burned banks in 2020-2021 - How FinWise built "Money Rails," an API-based payment hub with full sub-ledger tracking, after watching banks get burned by not owning their ledger of record - Why the credit and debit card markets are largely saturated, and where the real innovation opportunity still exists (credit-building products, early wage access) - Why BNPL companies are rushing to apply for their own bank charters now — and why Simon thinks most of them are building for today's lighter regulatory environment, not tomorrow's - How the "Big Beautiful Bill's" equipment depreciation rules and student lending caps are reshaping commercial and student lending opportunities ## About FinWise Bank FinWise Bank enables fintechs to bring innovative financial products to market through a comprehensive suite of banking, lending, payments, and card solutions. As a single banking partner for multiple fintech needs, FinWise provides the regulatory, compliance, operational, and program infrastructure that supports deposit, lending, card, and payment programs. Through Strategic Program Lending, BIN Sponsorship, MoneyRails™, and other solutions, FinWise helps fintech partners scale responsibly while navigating a highly regulated environment. Learn more here https://www.finwise.bank/fintech/ Explore the LendAPI Marketplace: https://www.lendapi.com/marketplace Listen on YouTube, Spotify & Apple Podcasts