Opportunity Financial, a Chicago‑based online lender, has applied for regulatory clearance to purchase BNCCORP and its subsidiary BNC National Bank in Arizona for $130 million. The transaction is presented as a step toward obtaining a national bank charter and expanding the company’s footprint beyond Illinois.
Consumer advocacy organizations and the state’s top law‑enforcement official have voiced opposition to the deal. Both parties argue that the combined institution could issue loans carrying interest rates above 100 percent, a level they characterize as predatory.
The acquisition would provide Opportunity Financial with a traditional banking platform in Arizona, linking its online lending model to a federally chartered bank. The $130 million consideration reflects the market valuation of BNCCORP and BNC National Bank.
Critics maintain that the ability to extend ultra‑high‑interest credit could heighten financial risk for borrowers, especially in vulnerable communities. They have urged regulators to weigh the potential for such lending practices before granting approval.
State regulators tasked with overseeing banking and consumer protection have indicated the application will be examined in the context of the raised concerns. No final ruling on the purchase has been issued as of the filing date.
The pending approval underscores broader scrutiny of digital lenders that seek growth through bank acquisitions, as authorities balance the push for financial innovation with the need to prevent exploitative loan terms.