150 Types of Unusual Investments – The List

32. De Novo Banks – after a drought of new bank openings after the Great Recession, a few de novo banks are once again starting each year.

De novo banks are small startup banks typically formed to serve a particular community or underserved niche of the market.  They typically need to raise $20 million or more in investor capital before being approved to obtain FDIC insurance and start doing business.

Investors like the adding oversight and scrutiny that bank regulators place on the management of the bank.  The idea of opening a bank that could grew and perhaps one day be acquired by a larger bank appeals to some investors.