Fintechs Go Bank Deep: Marsh & McLennan Maps the New Banking Frontier

Marsh & McLennan Companies, Inc. MMC, through its consulting arm Oliver Wyman, has teamed up with fintech-focused venture capital firm QED Investors to analyze the growing trend of fintechs seeking bank charters. Their report provides in-depth industry insights and strategic recommendations for fintechs navigating the complex charter process.

Fintechs are increasingly pursuing bank charters because many have matured enough to meet regulatory requirements, seek greater independence from sponsor banks and want to capitalize on opportunities in digital assets and embedded finance. Clearer regulations and supportive policies have made obtaining charters more feasible and appealing. This year alone, fintechs and other non-traditional financial firms have filed a record 20 applications for de novo charters or bank acquisitions, highlighting the scale of this shift.

This trend represents a potential structural change in the financial system. Bank-chartered fintechs can bypass sponsor banks, lower funding costs and scale faster. Traditional banks now face stiffer competition from digital-native players that operate efficiently and prioritize customer experience. Marsh & McLennan’s insights help the stakeholders grasp the regulatory, operational and strategic implications of this movement, supporting better decision-making for both fintechs and incumbent banks.

Fintechs with bank charters can expand lending, reduce costs and improve margins. Sponsor banks may lose revenue as fintechs internalize previously outsourced services. Valuations for fintechs could rise, reflecting enhanced stability and growth potential. Meanwhile, traditional banks must innovate to protect their market share. MMC’s analysis highlights a high-stakes environment where fintechs could reshape industry dynamics, forcing investors and banks to reassess strategy, risk and capital allocation in a rapidly evolving market.

Companies Providing Services to Fintechs

Companies like Accenture plc ACN and FTI Consulting, Inc. FCN support fintechs pursuing bank charters with technology, regulatory and strategic expertise. Accenture modernizes legacy systems by migrating them to cloud-based platforms, improving scalability and efficiency, while leveraging AI and automation to enhance risk management and reduce compliance costs. ACN’s July 2025 acquisition of Aristal, a Malaysia-based core banking consulting firm, strengthens its chartering capabilities. FTI Consulting advises fintechs on regulatory compliance and risk management, implementing frameworks like the “three lines of defense” model to ensure operational resilience. Both ACNand FCN help fintechs navigate complex charter processes efficiently.

Marsh & McLennan’s Price Performance, Valuation and Estimates

Shares of Marsh & McLennan have declined 3% year to date compared with the industry’s fall of 14.4%.

From a valuation standpoint, Marsh & McLennan trades at a forward price-to-earnings ratio of 20.23X, marginally lower than the industry average. MMC carries a Value Score of D.

The Zacks Consensus Estimate for Marsh & McLennan’s 2025 earnings implies an 8.8% increase year over year.

The stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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