Thrivent secures Individual Life Company license
In a significant development in the financial sector, Thrivent Financial for Lutherans has received an Industrial Loan Company (ILC) charter from the Federal Deposit Insurance Corp. (FDIC). This move paves the way for Thrivent to establish Thrivent Bank, an online-only institution headquartered in Salt Lake City.
The FDIC's approval comes amidst growing interest in ILCs as an attractive route for growth-focused nonbanks and fintechs to obtain bank licenses. Following the approvals of Square and Nelnet, Thrivent Bank is set to join the ranks of these innovative financial entities.
Brian Milton, proposed president of Thrivent Bank, expressed his pride in the approval and stated that Thrivent Bank brings a unique approach to banking, viewing money as a tool, not a goal. Milton is excited for the bank to launch and offer client-centered banking solutions and guidance.
Meanwhile, the Independent Community Bankers of America (ICBA) has expressed concerns about ILCs, arguing that they could create conflicts of interest and pose risks to the FDIC's Deposit Insurance Fund, the financial system, and consumer privacy. ICBA CEO Rebeca Romero Rainey, who opposes ILC charter approvals, argues that only a few states granting ILC charters should not dictate U.S. banking policy.
Interestingly, Romney's state, where 15 industrial banks operate, making it the nation's ILC capital, hosts Thrivent Financial for Lutherans.
It is worth noting that Brex and Edward Jones, two notable fintechs and wealth firms, have submitted ILC applications but later withdrew them. As of August 2025, no new information regarding the purchase of licensing rights is available, and there are no search results indicating that these companies have current or recent ILC applications pending with the FDIC.
In another development, the National Credit Union Administration needs to approve the merger of Thrivent Federal Credit Union (TFCU) into Thrivent Bank. The FDIC has set a condition for TFL to launch the industrial bank within 12 months. TFL intends to move all TFCU's existing products, customers, infrastructure, and personnel to Thrivent Bank as part of the merger.
A bipartisan group of senators wrote to the FDIC in March to consider pending ILC applications. The senators' letter underscores the ongoing debate surrounding ILCs and their role in the U.S. banking sector.
ILCs provide critical access to credit opportunities within the regulated banking sector, often serving customers in areas not traditionally serviced by larger financial institutions. However, concerns about their potential risks and conflicts of interest continue to be a topic of discussion among regulatory bodies and industry experts.
As the financial landscape evolves, the approval of Thrivent Bank's ILC application and its subsequent merger with TFCU mark significant milestones in the growth and development of online banking and the ILC sector. The future of these entities and their impact on the broader financial system will undoubtedly be a topic of interest in the coming months.
Fintechs, like Brex and Edward Jones, have shown interest in ILCs as a means to obtain bank licenses, but have withdrawn their applications in the past. Thrivent Bank, a fintech entity, is set to join Square and Nelnet among growth-focused nonbanks and fintechs receiving ILC charters.
