What is a fintech (digital bank)?

Fintech is short for financial technology. In everyday usage it refers to app-based companies that offer banking or payment services but aren't traditional banks. Think Chime, SoFi, Revolut, Cash App, and similar services.

Most of these companies aren't banks themselves. They partner with real, FDIC-insured banks behind the scenes to hold your money, while they handle the app and the customer experience on the front end. From your perspective they work like a bank, but legally they're a bit different.

For bank bonuses, fintechs show up in two ways. First, some of them run their own sign-up bonuses that are worth doing. Second, certain fintechs code their transfers in a way that qualifies as a direct deposit at some traditional banks, even if you're just moving your own money between accounts. That can be useful for meeting direct deposit requirements without needing a paycheck to land.

The catch with fintechs is that they can change their terms, get acquired, or pivot faster than a traditional bank would. They're fine for chasing bonuses. Just don't treat one as your primary bank unless you've done your homework on them.

Browse fintech bonuses to see what sign-up deals are available right now.