A group planning a digital bank in Connecticut has filed for deposit insurance.
Organizers of American Challenger Bank in Stamford submitted an application with the Federal Deposit Insurance Corp. on Wednesday. The group applied with the Office of the Comptroller of the Currency for a national bank charter in July.
Raymond Quinlan, a former Sallie Mae chairman and CEO, would serve as the proposed bank's CEO. Felix Scherzer, who once was global head of financial institutions group M&A at Credit Suisse Group, would become chairman and president.
The bank will have a holding company — American Challenger Development Corp. — and target Gen X customers. Products would include deposits, mortgages and senior-secured commercial loans, Scherzer said in an interview.
American Challenger would be capitalized with $750 million from the holding company's capital-raising efforts, Scherzer said. The bank also plans to raise $230 million by selling preferred stock.
The capital plan is “ambitious but achievable,” Scherzer said, adding that organizers are hoping to launch the bank in mid-2021.
“Our plan centers around a unique technology relationship with Temenos that will let us be cost-efficient and share those efficiencies with our customers,” Scherzer said. “We will also offer a differentiated experience behind the brand and we will have a different and diversified asset strategy.”
Temenos said in a statement posted on LinkedIn that American Challenger Development Corp. will use its cloud-based digital platform.
“Digital is accelerating, leading U.S. banking through a once-in-a-generation shift,” Max Chuard, Temenos’s CEO, said in the statement. “And we’re excited to partner with ACDC on their journey at the forefront of this transformation.”
A copy of the FDIC application was not immediately available.
