Credit inclusion is not a niche problem, with Noah Buchman

Why scale eventually hits a regulatory ceiling: #

Many fintech companies assume that technical sophistication and strong partnerships are enough to unlock growth. This episode questions that belief. In conversation with Noah Buchman, Co-founder of Propel and President of Propel Bank, the discussion focuses on what happens when fintech models reach structural limits. After years of operating as a non-bank entity, Propel found that certain markets, products, and operating permissions remained inaccessible regardless of technology or demand. Regulation, not innovation speed, became the gating factor.

Licensing changes what is possible, not just what is allowed: #

The episode explains why Propel’s move toward becoming a bank was not about independence from partners, but about expanding the range of services it could support. Banking licenses come with obligations, but they also come with exemptions, consistency across jurisdictions, and broader operating authority. For Propel, licensing unlocked the ability to support bank partners more efficiently and to operate within regulatory frameworks that non-bank fintechs cannot access.

A bank designed as infrastructure, not a consumer brand: #

Rather than entering consumer lending directly, Propel Bank was structured to provide services to other regulated banks. This approach reflects a broader shift in fintech architecture, where value is increasingly created at the infrastructure layer. The conversation highlights how bank-to-bank models reduce duplication, simplify compliance, and allow regulated institutions to move faster without sacrificing oversight.

When compliance becomes a strategic advantage: #

Becoming a bank introduces higher costs, stricter supervision, and reduced flexibility. The episode reframes those constraints as long-term advantages. Regulatory oversight builds durability, trust, and optionality across markets. Instead of viewing compliance as friction, Propel treats it as a foundation for sustainable scale and global expansion.

Why listen: #

This episode offers a rare inside look at why a mature fintech chose to become a bank. It explains how licensing reshapes strategy, why infrastructure now defines competitive advantage, and what founders misunderstand about regulation when building financial products at scale.