Bancorp Bank is owned by Megalith Financial Holdings, a private investment firm based in Delaware

Bancorp Bank is a federally chartered bank headquartered in Wilmington, Delaware. It is owned by Megalith Financial Holdings, a private company that acquired Bancorp in 2018. Before that acquisition, Bancorp operated as an independent bank for decades, but it has been part of the Megalith group since then.

The bank itself is not a subsidiary of a larger consumer bank you might recognize—it does not operate retail branches or take deposits from the general public in the traditional sense. Instead, Bancorp functions as a financial services bank, meaning it provides banking infrastructure and services to other financial companies, fintech platforms, and payment processors.

This distinction matters because it explains why you might encounter Bancorp's name on a debit card, in a bank account disclosure, or in the fine print of a financial app you use—even though you have never walked into a Bancorp branch or opened an account directly with them.

Key Takeaways

  • Megalith Financial Holdings, a private Delaware-based firm, has owned Bancorp Bank since 2018.
  • Bancorp Bank is a federally chartered bank that does not operate consumer branches; instead, it provides banking services to fintech companies and payment platforms.
  • Your money held at a Bancorp-backed account is still FDIC-insured up to $250,000 per depositor, per account category, because Bancorp itself is an FDIC member bank.
  • When you see Bancorp Bank listed as the issuing bank on a debit card or savings account, it means the fintech company or platform you use has partnered with Bancorp to hold customer funds.

How Bancorp Bank operates as a financial services provider

Bancorp Bank does not market itself to individual consumers. Instead, it works behind the scenes with fintech companies, payment platforms, and other financial institutions that need a bank partner. This is called a banking-as-a-service (BaaS) model.

When you open a savings account through a fintech app, receive a debit card from a payment platform, or use a digital wallet, the company behind that service often partners with Bancorp to hold your actual funds and process transactions. Bancorp provides the core banking infrastructure—the ability to hold deposits, process payments, and maintain compliance with federal banking regulations.

This arrangement allows smaller fintech companies to offer banking services without becoming a bank themselves. They handle the customer relationship and the user interface; Bancorp handles the actual movement of money and regulatory oversight.

FDIC insurance and deposit protection at Bancorp

Bancorp Bank is an FDIC member bank, which means deposits held there are insured by the Federal Deposit Insurance Corporation. This protection covers up to $250,000 per depositor, per account category, at the bank itself.

However, the way FDIC insurance works depends on how the account is structured. If you hold funds in a Bancorp account through a fintech partner, the insurance coverage is still $250,000 per depositor per account category—but the account category is determined by how the fintech company has set up the relationship with Bancorp. Some fintech platforms use a sweep arrangement, which means your funds are automatically distributed across multiple FDIC-insured banks to increase your total coverage. Others keep all funds at Bancorp, so your coverage is limited to $250,000.

You can check your fintech provider's disclosures or contact their customer service to learn whether your deposits are swept across multiple banks or held entirely at Bancorp.

Bancorp's relationship with fintech platforms and payment companies

Bancorp Bank partners with dozens of fintech companies across different sectors. These include digital banking platforms, payroll services, payment processors, and investment apps. The specific companies change over time as partnerships begin and end.

When you see Bancorp Bank named in your account disclosures or on your debit card, it means that particular fintech company has chosen Bancorp as its banking partner. This does not mean Bancorp owns the fintech company or that the fintech company owns Bancorp—it is a service relationship.

The fintech company remains independent and is responsible for customer service, product features, and user support. Bancorp's role is to hold the money, process transactions, and may support compliance with banking regulations. If you have a problem with your account, you typically contact the fintech company first, not Bancorp directly.

Regulatory oversight and charter status

Bancorp Bank operates under a federal charter, which means it is regulated by the Office of the Comptroller of the Currency (OCC), a division of the U.S. Department of the Treasury. This is different from state-chartered banks, which are regulated by their state banking authority.

Federal charter banks must meet specific capital requirements, undergo regular audits, and comply with federal banking laws. The OCC conducts examinations of Bancorp to may support it maintains adequate reserves, manages risk properly, and follows anti-money-laundering and consumer protection rules.

Because Bancorp is federally chartered and FDIC-insured, your deposits are protected by the same regulatory framework that protects deposits at any other FDIC member bank, regardless of whether you interact with Bancorp directly or through a fintech partner.

What changed when Megalith Financial Holdings acquired Bancorp

Before 2018, Bancorp Bank operated as an independent, publicly traded company. Megalith Financial Holdings acquired it and took it private, meaning Megalith now owns all shares and makes strategic decisions about the bank's direction.

The acquisition did not change Bancorp's charter status, FDIC insurance, or regulatory oversight. It remained a federally chartered, FDIC-insured bank. What changed was ownership and control—decisions about which fintech partners to work with, how to price services, and how to invest in technology now rest with Megalith's leadership rather than with public shareholders.

For customers whose money is held at Bancorp through a fintech app, the acquisition was largely invisible. Your deposits remained insured, your transactions continued to process, and your account terms did not change unless your fintech provider chose to modify them.

Frequently Asked Questions

Is my money safe at Bancorp Bank?

Yes, if your account is FDIC-insured. Bancorp is a federally chartered, FDIC member bank, so deposits are insured up to $250,000 per depositor per account category. Check your fintech provider's disclosures to confirm your coverage limit and whether funds are swept across multiple banks.

Why does my fintech app say Bancorp Bank is the issuing bank?

Your fintech provider has partnered with Bancorp to hold customer funds and process transactions. Bancorp is the actual bank; your fintech company is the service provider you interact with. This is a normal arrangement in the fintech industry.

Can I contact Bancorp Bank directly if I have a problem with my account?

You should contact your fintech provider first, since they manage the customer relationship and account features. If the issue involves the underlying bank account or a transaction that Bancorp processed, your fintech provider can escalate it to Bancorp on your behalf.

Does Megalith Financial Holdings own other banks?

Megalith Financial Holdings owns Bancorp Bank. Information about other holdings or investments is not publicly detailed, as Megalith is a private company. You can contact Megalith or Bancorp directly if you need more information about the parent company's structure.

What happens if Bancorp Bank fails?

If Bancorp failed, the FDIC would step in to protect insured deposits up to $250,000 per depositor per account category. The FDIC would either arrange for another bank to take over the accounts or pay out deposits directly. This protection applies regardless of who owns Bancorp.