Customers Bank, which offers personal and business banking solutions, including checking, money markets, savings, mortgages, loans, and cash management, has reportedly agreed to sell its BankMobile Technologies division to Megalith Financial Acquisition Corporation (NYSE:MFAC).
BankMobile Technologies is an established US-based digital banking platform. Meanwhile, MFAC is a special purpose acquisition firm. As noted in a release, both companies have finalized a “definitive” merger agreement.
The release confirmed:
“Upon closing of the transaction, the combined company will operate as BM Technologies Inc. and expects to be listed on the New York Stock Exchange. The transaction reflects an enterprise value for the Company of $140 million.”
The announcement noted that all BMT serviced deposits and loans will stay at Customers Bank after the transaction has been completed. BM Technologies will serve as a Fintech firm that will aim to bring banks and business partners together via its virtual banking platform.
BankMobile Technology claims more than 2 million customer accounts. Established in January 2015, BankMobile aims to offer a compliant, “mobile-first” banking experience that’s user-friendly, intuitive, and affordable.
Last year, the company was named “Most Innovative Bank” by LendIt. Its B2B2C Go-To-Market-Strategy “leverages a multi-partner distribution model to generate high volume, low cost, customer acquisitions,” the release noted.
BankMobile offers its Banking-as-a-Service (BaaS) platform to colleges and universities via BankMobile Disbursements, which reportedly reaches around 1 in every 3 college students in the US. BankMobile recently teamed up with Google to provide digital bank accounts, which will be offered to all its clients.
BankMobile expanded its White-Label strategy with T-Mobile, in order to help with the launch of T-Mobile MONEY.
Luvleen Sidhu, CEO at BankMobile, remarked:
“We are [pleased] to partner with MFAC to become a public company. In an era when digital banking continues to expand, we look forward to building our business over the coming years.”
A.J. Dunklau, CEO of MFAC stated:
“There has been rapid growth of digital banking platforms, or neobanks, as many customers search for less burdensome access to banking services. We believe that BankMobile’s approach to collaborate with distribution partners and partner banks, positions it well to continue to grow as an increasing number of non-banks are looking to offer financial services to their existing customers.”