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.