Bancorp Bank is owned by Megalith Financial Company, a private holding company based in Delaware
Bancorp Bank operates as a subsidiary of Megalith Financial Company, which acquired it in 2018. Megalith is a privately held financial services company that does not answer to a single public shareholder base — it is owned by investment funds and private equity interests. This structure matters because it means Bancorp's decisions flow through Megalith's leadership rather than through a public corporation's board.
Bancorp itself is a federally chartered bank regulated by the Office of the Comptroller of the Currency (OCC). That federal charter is separate from who owns the parent company. Your deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account category, regardless of Megalith's ownership. The FDIC insurance does not change when ownership changes.
Bancorp's main business is not retail checking accounts. The bank specializes in providing banking services to fintech companies, payment processors, and other financial technology firms. If you hold an account at Bancorp, it is likely because a fintech platform you use — such as a digital wallet, lending app, or payment service — uses Bancorp as its banking partner behind the scenes.
Key Takeaways
- Megalith Financial Company owns Bancorp Bank as a private holding company, meaning decisions are made by private investors rather than public shareholders.
- Bancorp holds a federal charter from the OCC and your deposits carry FDIC insurance up to $250,000, which does not depend on who owns the parent company.
- Bancorp primarily serves fintech companies and payment platforms, not individual consumers directly, so most people encounter it through another app or service.
- Ownership changes do not affect your account security, deposit insurance, or the day-to-day operations of the bank itself.
How Bancorp's ownership structure affects your account
When a fintech company or payment app holds your money at Bancorp, the bank is responsible for keeping that money separate and safe. Megalith's ownership does not change this legal requirement. Bancorp must follow the same federal banking rules as any other bank — it must maintain capital reserves, undergo regular audits, and report to the OCC.
The practical effect of private ownership is that Bancorp can move faster on business decisions than a publicly traded bank might. There is no quarterly earnings call to manage or shareholder vote to schedule. This can mean faster product launches or changes to how the bank serves its fintech clients. For you as a customer, this usually means the app or service you use can add features or change terms more quickly.
Private ownership also means less public disclosure. You will not find Bancorp's financial statements in the same way you would for a bank like Chase or Wells Fargo. However, the OCC still examines Bancorp's books regularly, and the FDIC still guarantees your deposits. The lack of public reporting does not mean less oversight — it means different oversight.
What changed when Megalith acquired Bancorp
Before 2018, Bancorp was owned by Megalith's predecessor entities. The 2018 restructuring consolidated ownership under the Megalith Financial Company name. This was a corporate reorganization, not a change in the bank's charter or insurance status. Your account remained insured, and the bank continued operating under the same federal license.
Megalith's acquisition brought capital and resources to expand Bancorp's services to fintech clients. The bank has since grown its role as a banking-as-a-service provider, meaning it powers the banking infrastructure for dozens of apps and platforms you may already use. This growth happened because Megalith had the financial backing to invest in technology and compliance infrastructure.
If you received notice of the ownership change when it happened, it was likely because your fintech provider sent you a disclosure. Banks must notify customers of certain corporate changes. However, most customers never see this notice because the app or service handles the communication, and the change is invisible to you operationally.
FDIC insurance and deposit protection under Megalith ownership
Your FDIC insurance coverage does not depend on who owns Bancorp's parent company. The FDIC insures deposits at any bank with a federal charter, and Bancorp holds that charter. If Bancorp failed tomorrow, the FDIC would cover your deposits up to $250,000 per account category — the same as if JPMorgan Chase failed.
Account categories matter here. If you have a checking account and a savings account at Bancorp (through a fintech app), each is insured separately up to $250,000. If you have a joint account with someone else, that is a separate category also insured up to $250,000. Money market accounts, retirement accounts, and trust accounts each count separately too. The FDIC website has a calculator that shows your exact coverage based on how your accounts are titled.
Megalith's ownership does not change this math. The FDIC's promise is backed by the federal government, not by the bank's owner. Even if Megalith faced financial trouble, your deposits at Bancorp would remain protected.
How to learn about your money is at Bancorp
You may not know your account is held at Bancorp because the fintech app or service you use does not always make this clear. Check your account statements or the app's settings. Look for the bank name in the fine print, in the terms of service, or in the "about this account" section. Many apps list the bank name when you first open the account, but bury it after that.
If you cannot find it, contact the app's customer service and ask directly: "What bank holds my deposits?" They are required to tell you. Once you know, you can verify that bank's FDIC insurance status on the FDIC's website (fdic.gov). Search for the bank name and confirm it holds a federal charter.
Knowing which bank holds your money matters for two reasons. First, it tells you whether your deposits are FDIC insured. Second, it tells you which bank's customer service rules apply if something goes wrong — a dispute, a fraud claim, or a technical problem. The app's customer service may route you to the bank's customer service for certain issues.
What happens if Megalith or Bancorp changes hands again
Banks and their parent companies are bought and sold regularly. If Megalith sold Bancorp to another owner in the future, your account would not be affected. The new owner would inherit the same federal charter, the same FDIC insurance, and the same regulatory obligations. You would likely receive a notice, but operationally nothing would change.
The only scenario that would affect you is if Bancorp's federal charter was revoked or the bank failed. This is extremely rare. The OCC does not revoke charters lightly, and the FDIC steps in to protect deposits before a bank actually fails. In the unlikely event of failure, the FDIC would either arrange for another bank to take over your account or pay out your insured deposits directly.
Ownership changes are a normal part of banking. What matters is the charter, the insurance, and the regulator — all of which stay the same regardless of who owns the parent company.
Frequently Asked Questions
Is Bancorp Bank safe if it is owned by a private company?
Yes. Private ownership does not affect safety. Bancorp holds a federal charter and is regulated by the OCC just like any other bank. Your deposits are FDIC insured up to $250,000. The bank must maintain capital reserves and undergo regular audits. Private ownership simply means the decisions are made by private investors rather than public shareholders.
What if I want to move my money out of Bancorp?
Contact the fintech app or service that holds your account and ask about transferring your money. The process depends on the app — some allow you to link an external bank account and transfer out, while others require you to close the account and receive a check or ACH transfer. The app's customer service can walk you through the steps.
Does Megalith's ownership mean my data is less secure?
No. Bancorp must follow the same federal data security and privacy rules as any other bank, regardless of ownership. The bank is subject to OCC audits and must comply with laws like the Gramm-Leach-Bliley Act. Your data security depends on Bancorp's compliance with these rules, not on who owns the parent company.
Can Megalith access my account or my money?
No. Megalith owns Bancorp as a company, but it does not own the deposits held in customer accounts. Your money is legally yours, held in trust by the bank. Megalith can make business decisions about how Bancorp operates, but it cannot access individual customer accounts or funds.