As Banks Cut Off Risky Fintechs, a Tiny Lender Leans In

In Woodhaven, Queens, beneath an elevated subway line an hour’s ride from Manhattan, sits an unremarkable bank branch, squeezed between a shuttered Rite Aid and a children’s events space that moonlights as a venue for $10 adult Zumba dance classes. A plastic banner fastened to the shop front bears the lender’s name: Community Federal Savings Bank.

Despite its sleepy appearance, the lender has emerged as a partner of last resort for fintech and crypto startups that other banks have cut off as too risky. In recent months that’s included one of the world’s highest-profile fintechs: Revolut, a banking app valued at $33 billion in 2021, which moved some of its U.S. business over to CFSB in March.