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  • BM Technologies plans to acquire Seattle-based Community Sound Bank First Sound Bank for a total of $ 23 million, a BaaS-like provider. Announced Monday.
  • BM Technologies said in a statement that the joint venture will be renamed BMTX Bank and will be “Fintech’s nationally focused banking service for customers nationwide.
  • “This is an exciting milestone for BM Technologies, and a major step forward in our vision for creating a disruptive Fintech bank.” Loulyn Siddu, BM Technology Chairman, CEO and Founder told analysts on Monday. Siddu leads. BMTX The company has stated that it will be the chairman and CEO, and will be directly responsible for digital banking operations. Marty Steele, president and CEO of First Sound Bank, heads the company’s Community Banking division and serves as BMTX Bank’s Chief Executive Officer. The agreement, subject to regulatory approvals, is expected to close in the second half of 2022.

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CD compares the agreement to that of Fintex, which has successfully acquired a bank charter over the past several years.

“Similar to these other Fintex, we believe this is an important step towards creating a sustainable and profitable company with many growth opportunities in the future,” she said.

During the analyst’s call, Sido listed several strategic and financial benefits to the agreement, including the ability to integrate its financial technology and proprietary BAS knowledge with the bank charter.

He said the agreement will enable BM Technologies to accelerate its revenue generation by supplementing its cash-based revenue with net interest income, he said. Engage and retain customers and help us implement our customer-to-life strategy.

“This move will allow us to become a Fintech bank that supports other Fintechs in the market, which is the same. Crossing river, WebBank, MetaBank and a few other players are working today, ”she said.

BM Technologies, formerly known as Bank Mobile, was operated by Wyomissing, Pennsylvania-based Customers Bancorp for $ 140 million for five years before being acquired by the private equity firm Megallis Financial Agreement Corporation. August 2020.

Under the customer umbrella, Fintech was the first direct model for users. Switch to trade-to-trade One in 2016, in the face of growing competition from challenging banks.

He said the company would be more competitive than other Fintechs looking for their own bank charter in the past.

“We were born in a bank and worked in the bank for six years before becoming an independent Fintech company, which gives us a lot of competition compared to other Fintechs who hope to become a bank,” she said. “We firmly believe that it is the most profitable way to build our bank model by sharing revenue with our partner bank model and having little control over our financial future.”

Consumer Bank continues to roll out BM technologies’ customer deposits, but Sidi said those deposits will be transferred to the new entity over time.

BM Technologies is open to exploring more strategic M&A opportunities, Sid said, and plans to include product offering advice, crypto, investment and insurance in the next six to 18 months. The company plans to take the “build, buy, partner” approach to add new products and services to its digital banking platform, Sidu said.

“As a domestic bank, we are committed to our community and we are pleased to have BMTX’s innovative digital banking technology, banking services as a business model, low-cost deposit support and better access to capital markets. [Small Business Administration], Commercial and Private Banks, Bonding and Other Business Lines, ”Steele said in a statement on Monday. High level. “