Customers Bancorp sells BankMobile to Megalith Financial Acquisition

Customers Bancorp has agreed to sell subsidiary platform BankMobile to Megalith Financial Acquisition. The company would then merge with Megalith, change its name to BM Technologies, and go public. As part of the transaction, Customers Bancorp will receive about $87 million in cash and stock in BM Technologies and $10 million in value tied to a new technology license, American Banker reported.

Why should we care?
BankMobile currently has more than two million accounts. It is the banking engine behind T-Mobile Money and one of the partner institutions for Google-branded bank accounts that will launch next year. BankMobile also offers its platform to colleges and universities. As part of the new entity, all of its deposits and loans would stay at Customers Bancorp, and BM Technologies would offer products to other institutions. It appears BankMobile is jumping on the open finance bandwagon, and sees opportunities to fuel the growth of nonbanks offering financial capabilities. “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 nonbanks are looking to offer financial services,” A.J. Dunklau, CEO of Megalith, said in a press release.