Sunday, October 25, 2026 · Issue No. 2 · 1 min readDownload PDF
Sezzle seeks a bank charter as Amex beats and raises
BNPL lender Sezzle applied to the OCC for a national trust bank charter, joining a wave of fintechs (Block, Ramp, Avant, Upgrade) moving to become banks rather than rent bank partners. American Express beat Q3 estimates and raised its FY EPS guide, but plans to cut ~5% of staff and was fined $350M by the Fed and OCC over AML failures.
$4.68
Amex Q3 EPS
vs $4.47 est.
~3,900
Amex job cuts
~5% of workforce
$350M
Amex AML penalty
Fed + OCC
12-18 mo
Sezzle charter review
OCC, Fed, FDIC
Card issuers
American Express
Q3 EPS was $4.68 (vs $4.47 est. and $4.14 a year ago) on revenue of $20.06B. FY26 EPS guidance is now $17.60-17.90. Amex plans to cut ~5% of its workforce (~3,900 roles, $336M charge) to "reduce layers." Separately, the Fed and OCC fined it $350M over AML failures, with no change to guidance (American Banker, Oct 23).
BNPL & installments
Sezzle (Oct 22)
Sezzle applied to the OCC for a national trust bank charter to add checking, savings and broader banking for "people who prefer BNPL." It dropped its earlier Utah ILC plan, citing new state BNPL rules (NY, IL, OR) and pushback on ILCs. The review is expected to take 12-18 months. TD Cowen called it "a smart move."
New entrants & fintech
Charter wave
Block, Ramp, Avant and Modern Treasury have sought OCC charters in recent months, and Ramp applied the week before Sezzle. Context: Affirm applied for a Nevada ILC earlier in 2026, PayPal sought a Utah ILC in Dec 2025, and Upgrade filed for a Nevada ILC on Oct 12, 2026, naming ex-OCC and SoFi executive Virginia Varela as bank CEO.
Why it matters
Fintech lenders with their own deposits and charters get cheaper, steadier funding, which sharpens competition with card issuers for retail and co-brand partners.
Tech & tools
Amex AI push
Amex is applying AI across servicing, operations and product. It is pursuing agentic commerce, where AI agents shop and check out, and has an AI-powered payroll product due in early 2027. It acquired AI firm Hyper earlier in 2026.
Regulatory radar
State BNPL rules
Sezzle named New York, Illinois and Oregon BNPL rules as a driver of its move to a federal charter. That's a sign state-level BNPL regulation is reshaping how lenders structure themselves.
AML enforcement
The Fed and OCC fined Amex $350M over anti-money-laundering failures.
Previous issueSat, Oct 24 · Card charge-offs ease at Capital One as BNPL lenders sign new dealsNext issueMon, Oct 26 · Europe's new BNPL rules land on Klarna and PayPal
Sources are linked in every issue. Confirm figures against the original filings before relying on them.