OneMain submits applications for industrial bank charter with UDFI, FDIC

OneMain (OMF) Financial announced it has submitted applications with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish OneMain Bank, a wholly-owned industrial bank subsidiary to be located in West Valley City, Utah. As proposed, the OneMain Bank subsidiary would expand OneMain Financial’s current suite of financial products to hardworking Americans nationwide with personal loans, auto finance, credit cards, and savings accounts, building upon OneMain’s strengths. It would also allow OneMain to serve more customers and drive more capital generation without significant changes to its capital allocation strategy. “OneMain Financial has provided responsible lending solutions to a large and often underserved population for more than a century,” said Doug Shulman, Chairman and CEO of OneMain Financial. “With a bank subsidiary, we can leverage OneMain Financial’s operational experience and analytic expertise to further expand access to credit to individuals and families, helping them meet today’s needs with a differentiated line of products that provides a path to a better financial future.” If approved, OneMain Bank’s deposits will be federally insured. OneMain Bank will operate independently of OneMain Financial, with separate governance, controls, and policies in compliance with federal and state law, allowing OneMain Financial to maintain its current diverse business offerings and retain its non-bank status. Lee Carter has been selected to serve as OneMain Bank’s President, with over 35 years’ experience in the banking industry in various roles in the Salt Lake City area, including President and Chief Operating Officer of UBS Bank USA, and Senior Vice President at Zions Bank.