The Commissioner of Financial Institutions Conditionally Approves the Industrial Bank Charter of Nelnet Bank

The Commissioner of Financial Institutions Conditionally Approves the Industrial Bank Charter of Nelnet Bank

Salt Lake City – Commissioner G. Edward Leary of the Utah Department of Financial Institutions (Department) announced today that on March 17, 2020 he signed an approval Order conditionally approving the application of Nelnet Bank to operate as a Utah state-chartered industrial bank.

Nelnet Bank’s approval is the second industrial bank approval announced today, and is the second industrial bank charter granted by the Commissioner since 2008.

Nelnet Bank’s application to operate as a state chartered industrial bank headquartered in Salt Lake County, Utah was filed on November 12, 2019. The approval is conditioned, among other things, on the applicant obtaining federal deposit insurance from the Federal Deposit Insurance Corporation.

The bank plans to operate a nationwide business model that provides banking products and services primarily to consumers and nonprofits associated with the education market.

The Department is the regulator for all state-chartered banks, industrial banks, and credit unions. The Department also regulates trust companies, independent escrow companies, check cashers, deferred deposit lenders (payday), title lenders, consumer lenders, as well as first mortgage loan servicers, and third-party payment providers (money orders, travelers checks, wire transfers).

As of December 31, 2019, Utah-chartered depository institutions had combined total assets of $324 billion dollars.