“Our vision for the next three to five years is that we build BM Technologies with a market cap of $500 million to $1 billion,” she said. Sidhu declined to elaborate on how BM Technologies would use that capital to enhance its products, but she ticked off a number of goals for the upcoming year. “Maybe this is a way for them to expand the possibilities for where they want to take the product and accessing additional capital they might not have been able to raise through traditional venture-backed sources.” Sidhu co-founded BankMobile with her father in 2014.
In contrast, “BankMobile is a little past that in the sense it has been around for a while and its operating model is fairly mature,” he said. “That doesn’t leave you a lot of wiggle room to build on top of that and launch products in the consumer lending or investment space.” “You might have millions of customers, like many of the challengers do, but you might only be offering a debit card and spending account and trying to make money off of interchange,” Greer said. Challenger banks need customers to be profitable but need a varied set of products to become viable. He says many challenger banks funnel their resources to customer acquisition, where the costs can be high, but stall at the next step: diversifying their products. Stephen Greer, senior analyst at Celent, a research and advisory firm in Boston, said it will be easier for BankMobile to raise capital as a publicly traded company than directly through investors. (Sam Sidhu, Luvleen’s brother and the chief operating officer at Customers Bank, was Megalith Financial's CEO Jay Sidhu, Luvleen's father, and Sam Sidhu were beneficial owners.) In August, the $18.8 billion-asset Customers announced that it had agreed to sell BankMobile Technologies to Megalith, which was formed in November 2017 to buy financial services and fintech companies. The ability to source capital outside venture funding could help fintechs diversify their product offerings and become more competitive with banks.Ĭustomers' divestiture of BankMobile has been in the works for years. Join us today and get access to the #1 collection of browser-based blanks.Luvleen Sidhu, CEO of BM Technologies, hopes to raise BM's market cap up to $1 billion over the next few years, pull in a million accounts per year, and add one substantial partner per year to its white-label banking service.įintechs going public through blank-check companies could be part of a trend - the day after BankMobile closed its deal, Social Finance Inc., the online lender known as SoFi, announced that it would go public as part of a SPAC transaction. There are already more than 3 million users making the most of our rich library of legal forms.
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