nonbank

Not a bank

A nonbank is a financial institution that offers banking-like services—loans, credit, payment processing—without holding a traditional banking charter.

Nonbank lenders include mortgage companies, payday lenders, and fintech platforms.

They operate outside conventional banking regulations: Nonbank lenders now originate most U.S. mortgages.

As an adjective: nonbank financial institutions.

shadow

interconnectedness

State of mutual linkage

unregulated · oversight · Dodd-Frank

lending

credit-union

Member-owned financial cooperative

borrower · collateral · refinancing · debt · principal · amortization · default · foreclosure · creditworthiness · securitization

regulation

unlicensed

Without official permit

prudential · licensing · disclosure · transparency · enforcement · loophole · deregulation

fintech

mobile-payment

Purchasing via handheld device

  • robo-advisorAutomated investment management platform
  • neobankBranchless digital financial institution
  • blockchainCryptographic linked transaction record

cryptocurrency · remittance · Venmo · PayPal · Stripe · Klarna · API · disruption

investment

endowment

Permanent donated fund

fiduciary

Opposites
institutional type in financial services

nonbankbank

Place holding deposits

commercial bank · retail bank · savings bank · thrift · credit union

Family

nonbanking

Familiarity
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