BankMobile partners with MFAC to become a public company under the name BM Technologies

By Pavithra R

BankMobile Technologies, a subsidiary of Customers Bank and one of America’s largest digital banking platforms, has announced that the firm has entered into a definitive merger agreement with Megalith Financial Acquisition Corp a special purpose acquisition company to bring a digital banking platform to the public Market under the new name BM Technologies.

BM Technologies expects to be listed on the NYSE and it reflects a transaction enterprise value of $140 Million. On closing of the transaction, all BMT serviced deposits and loans will remain at Customers Bank. The firm will function as a FinTech company bringing banks and business partners together through its digital banking platform.

“We are thrilled 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 and taking advantage of all strategic opportunities,” said BankMobile CEO Luvleen Sidhu.

Founded in 2015, BankMobile Technology‘s mission has been to provide a compliant, mobile-first banking experience that is simple, affordable, and consumer-friendly. In a separate announcement, BankMobile has also announced its partnership with Google to offer digital bank accounts.

The firm has also expanded its White-Label strategy most recently with T-Mobile for the launch of T-Mobile MONEY. Customers Bank is to receive approximately $97 mn in consideration comprised of cash, stock in the Company, and approximately $10 mn in value attributed to a new technology license with BMT, subject to potential adjustment based on certain factors.

“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. Accordingly, we believe that the opportunity to bring BankMobile to the public markets as a stand-alone company is highly attractive,” said A.J. Dunklau, CEO of MFAC.