Quontic Bank started with just one branch and about $20mn in assets before CEO Steve Schnall recapitalized and set a fresh journey forward; the bank was over reliant on wholesale deposits, regulators then forced the bank to make changes which made Schnall pivot towards becoming a digital bank; Quontic also remade how they use technology by building Quontic Works, a middleware solution that sits on top of their existing core banking technology and provides API connectivity; as a CDFI the bank needs to prove 60 percent of their loans are going to low income areas in order to receive grants, working with a firm in Montreal they rebuilt how they use data and save hundreds of man hours; not only was technology overhauled but so was they way employees were paid and evaluated as they knew they could not act like a traditional bank; Quontic believes they can grow and take on the likes of Chime as Schnall tells TearSheet, “I think we can double the size of the bank in a couple of years. Our capital growth is organic and we’re proving we can do what Chime does with a bank charter. We’ve proven this business can scale to infinity.” TearSheet
