Propel Holdings Inc. (“Propel” or the “Company”) (TSX: PRL), the fintech facilitating access to credit for underserved consumers, today announced it has received regulatory approval from the Office of the Commissioner of Financial Institutions of Puerto Rico (“OCFI”) to establish Propel International Bank, Inc. (“Propel Bank”), a wholly owned subsidiary of Propel.
Propel Bank is licensed as an International Financial Entity (“IFE”) overseen by the OCFI. Established under the U.S. banking framework, many IFEs today provide a range of banking and financial services to clients in the U.S. and globally.
Propel Bank represents an evolution of Propel’s fintech-bank partnership platform. At launch, Propel Bank will focus on serving existing and future bank partners by providing core consumer lending services including underwriting, compliance, and customer service. Propel Holdings will not become a bank holding company.
Propel Bank will provide long-term strategic benefits, including:
- Potential for Product and Service Diversification
The establishment of Propel Bank creates potential for growth — including the addition of customary banking products and services, subject to regulatory approval. - Expanded Access to Markets
With its IFE license, Propel Bank allows for an expanded presence in existing and new markets.
“Propel Bank marks the next step in our journey to become global leaders by strengthening our partnership platform, expanding our reach, and opening new pathways for growth. This approval validates the strength of our team, our technology and the business we’ve built and positions us to create greater opportunity for partners, shareholders, and underserved consumers”, said Clive Kinross, CEO of Propel Holdings.
Operationalization of the Bank
Propel Bank will be headquartered in Puerto Rico with its own management team. The experienced management team in Puerto Rico has already been identified and will start in Q1 2026. Noah Buchman, Propel’s President and Chief Revenue Officer, will also serve as Propel Bank’s President. Propel Bank will leverage the Company’s AI-powered technology platform and operational infrastructure to deliver its services. Propel Bank is expected to be operational in the first half of 2026.
International Financial Entity
IFEs operate within a highly regulated environment that benefits from Puerto Rico’s status as a U.S. territory and the application of U.S. federal laws such as anti-money laundering statues including the Bank Secrecy Act and the PATRIOT Act. OCFI regulates banking institutions within the jurisdiction.
OCFI’s approval follows a multi-year investment by Propel in building out its banking infrastructure and OCFI’s comprehensive evaluation of Propel’s governance, compliance, and operational readiness, reflects strong confidence in the Company’s ability to launch and manage a fully regulated financial institution. Purpose-built for modern fintech innovation, the IFE regime pairs robust U.S. regulatory oversight with the flexibility needed for technology-driven financial services.
The IFE positions Propel Bank to deliver secure and scalable servicing capabilities as the Company expands its financial ecosystem.
For more information visit propelholdings.com/propel-bank/
