OppFi and Enova Bank Deals Put Lending Economics Under Scrutiny

Two FinTech-bank acquisitions valued at a combined $499 million when announced have turned state interest-rate caps into an M&A issue, with substantial projected deal benefits sitting alongside a challenge from 20 state attorneys general. The attorneys general asked the Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. in a letter to deny banking privileges to companies they contend use bank partnerships to circumvent state interest-rate limits.