BM Technologies, which was spun out of Customers Bank in 2021, had touted the deal as a strategic move that would enable the fintech to combine its financial technology and proprietary BaaS expertise with a bank charter.
This move enables us to become a fintech bank that can support other fintechs to come to market, similar to what Cross River, WebBank, MetaBank and a few other players are doing today.
BM Technologies is in the process of finalizing a new sponsor bank agreement, which will provide the firm with “variable pricing and improved economics.
Interest rates and their outlook are materially higher today than last year when the merger was announced.
The regulatory approval process was in fact prolonged, which gave us an opportunity to reflect on broad strategy of maximizing the value of the bank to all of the stakeholders, customers, employees, business partners and regulators.