Laplanche, who was also the co-founder of LendingClub before leading Upgrade to a $7.3 billion valuation, was unsparing in a recent interview with Fortune. The fintech sector itself, he claimed, “would not even exist if, frankly, banks had done a better job really delighting their customers with product innovation that moves the needle,” Laplanche said, arguing that the industry’s reliance on “nickel and dime” fees and “unpredictable” costs created the very void that he’s spent his whole career filling.

Laplanche’s most pointed criticism was reserved for the credit card itself, a “horrible financial product,” and something that’s brought millions of American families to a crisis point. Besides high fees, which Laplanche noted are core to the profitability of these products, he argued that credit cards are “really designed to keep people in debt as long as possible,” encouraging a minimum payment that will keep people paying off debt for decades. In a world where Americans have an average of five credit cards each, Laplanche warned of a financial landscape full of land mines. This is where Laplanche’s latest company comes in, he said.

The Fintech Response

Upgrade was founded specifically to combat this cycle of perpetual debt. Laplanche described the company’s mission as helping people “upgrade” their finances by offering more affordable and responsible credit products. Really, it’s about “helping people improve their financial situation and upgrade their finances and their credit.” One such innovation is the “One Card,” which merges the features of a debit and credit card to allow users to “pay now” for everyday expenses or “pay later” for larger purchases.

Crucially, the card provides the same rewards regardless of the payment method, removing the “extra incentive” to carry debt just to earn travel miles or points. By operating without the high overhead of physical branches at every corner, Laplanche argued that fintech firms can achieve profitability without relying on the predatory fees that traditional banks use to support their legacy infrastructure.

Both Congress and state governments are trying to lower costs by reining in credit-card fees, though critics say that doing so could have a negative impact on consumers’ ability to earn rewards. Even President Trump, in a typically unorthodox and populist move, has warned that he could move to cap credit-card fees at just 10%, hinting that he was inspired by private text messages with New York City’s democratic socialist mayor, Zohran Mamdani.

In Davos, JPMorgan CEO Jamie Dimon let loose on the potential policy, warning “it would be an economic disaster,” as it could remove credit lines for 80% of Americans. A study by the American Bankers Association found 74% to 85% of open credit card accounts nationwide would be affected by this cap—that’s up to 159 million cardholders.

A Resilient but Strained Consumer

Despite the “crushing” reality of $1.3 trillion in debt, Laplanche said he was still bullish on the American consumer, citing something in the American spirit. “I think there’s an optimism,” he said, even despite all the political division in the country and the problems that need to be fixed. “There’s still some optimism that tomorrow [can] be better,” but Americans believe that you have to work for it, he added.

Even as consumer confidence has dipped for four consecutive months, the underlying economy continues to be powered by a uniquely American sense of optimism. Consumer credit, from this perspective, is a “bet on your own future.” Laplanche, a French-American who has lived in Hong Kong, among other regions, said he doesn’t see this same sense of optimism everywhere.

Looking to the Future

As the industry moves into its next decade, Laplanche said he beleives the focus will shift from solving single problems to providing comprehensive banking services. He is particularly focused on the impact of AI, but not just for back-office efficiency. Laplanche asks: “How do you use AI to come up with better financial products that really move the needle for consumers?”

For Laplanche, the goal remains the same: using technology to dream up perfect, consumer-centric products that bypass the “arcane” frameworks of the past. Whether through personalized AI agents or transparent credit terms, the focus is on providing tools that point families toward financial recovery—rather than a 25-year debt trap.

Additional reporting contributed by Nick Lichtenberg