Banking as a service

BaaS Company Spotlight 7/8: BankMobile — A complete white label banking solution

  • BankMobile is one of the biggest digital bank brands in the US.
  • With T-Mobile MONEY as its first BAAS client, the company wants to do more partnerships.
close

Email a Friend

BaaS Company Spotlight 7/8: BankMobile —  A complete white label banking solution

This spotlight of a leading banking as a service provider is part of Tearsheet’s coverage of BaaS. Please see our BaaS Buyers Guide for more information.

  • Who we spoke to: Luvleen Sidhu, Co-Founder and President
  • Establishment date: 2015
  • Bank license: Yes, as a division of Customers Bank
  • API documentation: None publicly available

History

Launched in 2015 as a division of Customers Bank, BankMobile claims it is the fastest growing mobile-first bank platform in the United States. Originally only focusing on the general ‘underbanked/unbanked’ market, BankMobile soon started focusing on a B2B2C model, partnering with universities to offer students bank accounts, financial aid disbursements, and refunds. Now with over two million accounts from over 800 universities, BankMobile covers one out of three students in the US. Recently, BankMobile has moved to a more BaaS approach, partnering with T-Mobile to offer checking accounts to their customers with a program called T-Mobile MONEY.

Services Provided

BankMobile offers a full suite of white labeled banking services. It offers regular banking services including checking and savings accounts, personal loans, credit cards, and student refinance, as well as custom branded app/card, risk management/compliance, customer care, program reporting, and marketing support.

Differentiator

BankMobile considers its biggest point of differentiation to be that it’s a division of Customers Bank, allowing it to offer FDIC insured accounts. It says it is customer focused and dedicated to the mission of financial empowerment, which is evident in its partnerships and collaborations.

Chief Competitor

Although BankMobile has a model that focuses on white label (it doesn’t offer any sort of API documentation for other companies to easily connect with and explore), the closest competitor would be Green Dot, which has its own white labeled products. The company intends to “create another white label relationship by the end of 2019”. BankMobile would be the other end of the BaaS spectrum, offering a complete solution rather than separate, modular banking services like Synapse and BBVA. 

Target Customer

Although BankMobile has a stronghold in the student market through its higher education strategy, the bank is looking to branch out into different industries and markets, as shown by its T-Mobile partnership. BankMobile’s sweet spot appears to be to partnering with companies that can provide high volume of customers at low cost, although “the beauty of banking is that everyone needs a bank, and we are looking to bank anyone who is looking for a better banking experience.” 

Future Plans

BankMobile is looking to get more into other industries and expand to new white label partners. 

Clients and Case StudiesT-Mobile MONEY: BankMobile now powers T-Mobile MONEY, a fee-free account offered through the cellular phone company, T-Mobile. Account holders can earn 4 percent interest on deposits up to $3,000 and 1 percent after that. T-Mobile Money also offers connectivity to leading mobile wallets, bill pay and mobile check deposits.

Banking as a Service Buyers Guide

0 comments on “BaaS Company Spotlight 7/8: BankMobile — A complete white label banking solution”

Outlier OpinionsMakers

Banking as a service, Sponsored

Banking as a Service unlocks opportunities for brands, bigtechs, fintechs, and banks

  • BaaS is a gamechanger for more than the end-users, but the entire financial ecosystem: distributors, enables, and providers.
  • According to Finastra’s latest research, 85% of senior executives are already implementing BaaS solutions, or planning to within the next 12-18 months.
Finastra | March 28, 2022
Banking as a service

Quick take: Piermont Bank eyes embedded business with Unit partnership

  • Piermont Bank announced a new partnership with Unit to expand its product capabilities.
  • The bank says it has an active waitlist of fintechs and it expects to onboard more clients in 2022.
Subboh Jaffery | March 04, 2022
Banking as a service, Business of Fintech

‘People don’t care about privacy’: How payment app Mezu pivoted to become embedded finance platform Alviere

  • Mezu, a privacy-focused payments app, didn't manage to catch on - so the management team decided to turn it into an embedded finance platform - Alviere.
  • Alviere focuses on big brand companies with an existing customer base that want to add banking services to their toolkit.
Iulia Ciutina | December 29, 2021
Banking as a service, Sponsored

Wildfire: The industry-by-industry spread of banking as a service

  • Banking as a service has progressed from its original role enabling neobanks to investing, PFM, and more.
  • One can look at how banking as a service has performed in nearby industries to gauge whether it’s worth adopting.
Q2 | November 09, 2021
Banking as a service, Member Exclusive

Synctera is creating a marketplace model for its banking as a service platform

  • New BaaS firm Synctera is differentiating itself from competitors by giving fintechs options from more than one bank.
  • Still, platform risk could slow the company’s progress.
Rivka Abramson | July 07, 2021
More Articles