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And while fintech-bank partnerships are well regulated, chartering provides streamlined oversight over fintech activities. Fintechs that pursue their own charter may benefit from greater consumer trust resulting from federal regulatory supervision and other banking privileges.

The charters aimed to allow fintechs to offer lending or payment products without insurance from the Federal Deposit Insurance Corporation (FDIC) and have federal oversight instead of complying with state banking regulations.

To conclude, fintechs with banks will be the way forward in redefining India's financial services sector. Collaboration between both the players is only going to get stronger, bringing to the table the best of traditional banking coupled with the innovation and agility of fintechs.

?When banks and fintechs come together, it can help to solve problems, enhance loyalty and deliver a better customer experience,? she says. ?All of which is critical to the long-term success of fintechs and banks.?

In banking literature the term ?charter value? is the term most often used to refer to the intrinsic value of the firm. A bank's charter value is the present value of its future economic profits as a going concern.

A charter allows a financial institution to perform certain financial services, including accepting deposits, making loans, and providing a range of fiduciary services to its customers. While some charters allow banks to do all of these things, others are limited in purpose to allow only a subset of financial services.

National banks are chartered and regulated under federal laws and are supervised by a central agency. State banks are chartered and regulated under state laws and are supervised by a state agency.