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BM Technologies (BMTX) Luvleen Sidhu on Becoming a Bank and FinTech Evolution

BM Technologies CEO Luvleen Sidhu joins the Know Who Drives Return Podcast.

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BM Technologies (BMTX) is a digital, mobile-first FinTech that was born out of BankMobile and boasts ~2M accounts. BankMobile was originally founded by Luvleen Sidhu and developed at parent Customers Bank (CUBI), before ultimately separating and going public via SPAC Megalith Financial Acquisition in January 2021. BMTX recently announced a strategic merger with First Sound Bank and now has plans to become a FinTech bank.

Luvleen is part of a family of lifelong bankers. Father Jay is chairman of Customers Bancorp and brother Sam is the CEO of Customers Bank (we recently spoke to him on our podcast). Luvleen sat down with the Know Who Drives Return podcast to discuss BMTX's future as a FinTech bank, digital banking, and rationale for acquiring a bank charter.

Key Takeaways

  • Significant portion of their business is focused on higher education, relationships with 745 universities. High-volume, low cost customers. 
  • Banking as a Service (Baas), using their technology to white-label deals with enterprise clients. Currently has a deal with T-Mobile MONEY.
  • Aiming to announce 1 major white label deal per year. Previously promoted pillar deal with Google is now off the table. No details yet for next deal.
  • Will become a Bank following purchase of First Sound for $23M in move to get bank charter, supplement earnings with net interest income
  • Moving away from bank partner deal with Customers Bank raises near-term profitability questions if rates stay low
  • See Investor Presentation for more details

Source: BMTX investor deck

Source: BMTX investor deck

BMTX has been under a little pressure since De-SPAC in January

BMTX has been under a little pressure since De-SPAC in January

Topics Discussed

  • Luvleen's career background and founding of BMTX
  • Overview of BMTX, and first higher education business
  • White labeling, partnerships with T-Mobile and future prospects
  • Merger with First Sound bank, and rationale for purchase, bank charter route
  • What's BMTX crypto strategy going forward
  • SPAC route rationale for BankMobile, and working with family
  • Experience as a young, female CEO of public company
  • Growth plans, building vs. buy

About Luvleen Sidhu

Background: Luvleen's personal website

Luvleen Sidhu has served as BankMobile’s Chief Executive Officer and Director since 2019. From February 2014 to present, Ms. Luvleen Sidhu served as Chief Strategy Officer and President of BankMobile, which she helped found. Ms. Luvleen Sidhu earned her MBA from the Wharton School of Business of the University of Pennsylvania and her bachelor’s degree from Harvard University. After graduating from Harvard and Wharton she was a management consultant at Booz & co. in their financial services practice. 

Ms. Luvleen Sidhu is a recognized leader in the industry and was named one of Crain’s New York Business 2020 40 Under 40 and a “Rising Star in Banking & Finance” in 2020. She was previously named Fintech Woman of the Year by Lendit Fintech for 2019. Before attending business school at Wharton, she was an analyst at Neuberger Berman and also worked as a director of corporate development at Customers Bank

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