A charter from the Office of the Comptroller of the Currency would allow the Chicago-based lender to expand its credit products, diversify beyond them, and reduce its cost of funds, the CEO said.

Online lending platform Avant applied for a de novo bank charter Friday, joining a parade of fintechs in pursuit of deposit insurance and full banking capabilities.

The Chicago-based fintech, which launched in 2013, offers credit cards and unsecured loans to serve middle-income Americans that Avant’s co-founder and CEO, Al Goldstein, called “overlooked by the legacy system.”

“We’ve spent more than thirteen years developing a data-driven approach to credit that serves this population at scale,” Goldstein said in a press release. “A national bank charter would further our mission, help reduce our cost of funds, and enable us to offer products under one regulatory framework.”

A charter from the Office of the Comptroller of the Currency would allow Avant to expand its credit products and diversify beyond them, as well as reduce its cost of funds, Goldstein said in a prepared Q&A shared with media.

“If approved, a bank charter would enable Avant Bank to operate under one regulatory framework, which supports more consistent access to Avant products no matter where a customer lives in the United States,” Goldstein said. “Moreover, it would enable a simplified operating model which helps us to continue to improve the customer experience as we seek to become the core financial partner for middle-income Americans.”

S. adults applied for credit last year, and one-third of those were denied or approved for less credit than they requested, according to the Federal Reserve .

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