Member Exclusive

Why MVB Financial’s fintech strategy includes strategic acquisitions

  • Trabian is one of a few MVB acquisitions intended to build out MVB’s fintech capabilities.
  • FIs need to create value for customers outside of the products and services they offer.
close

Email a Friend

Why MVB Financial’s fintech strategy includes strategic acquisitions

On April 19, MVB Financial’s acquisition of Trabian Technology signifies MVB’s latest play in its strategy to build out tech products to accelerate its own growth and better serve its fintech clients. Trabian specializes in building integrations and digital products for fintechs.

MVB Financial’s core business is MVB Bank and the banking-as-a-service offering it provides to fintech companies. Fintech clients contribute a good chunk to MVB’s deposits. According to its first quarter report for 2021, MVB Bank’s non-interest-bearing deposits were $837.2 million as of March 31, 2021 — 37.8 percent of its total deposits and a 116 percent increase from March 2020. Fintech deposits totaled $744.6 million — an increase of almost 300 percent from March last year, pushing MVB to become the 21st largest bank in the U.S. based on number of accounts.

On April 19, MVB Financial’s acquisition of Trabian Technology signifies MVB’s latest play in its strategy to build out tech products to accelerate its own growth and better serve its fintech clients. Trabian specializes in building integrations and digital products for fintechs.

MVB Financial’s core business is MVB Bank and the banking-as-a-service offering it provides to fintech companies. Fintech clients contribute a good chunk to MVB’s deposits. According to its first quarter report for 2021, MVB Bank’s non-interest-bearing deposits were $837.2 million as of March 31, 2021 — 37.8 percent of its total deposits and a 116 percent increase from March 2020. Fintech deposits totaled $744.6 million — an increase of almost 300 percent from March last year, pushing MVB to become the 21st largest bank in the U.S. based on number of accounts.

Matt West, chief strategy officer at MVB Financial, says Trabian’s expertise will help MVB improve its BaaS offerings so its fintech clients can build better digital products. West anticipates Trabian’s use in a host of cases, such as helping challenger banks or embedded finance clients add mobile remote deposit capture (mRDC), direct deposit or bill pay into their offerings. He says there’s also potential for Trabian to serve in a “lead engineering and development” capacity for an MVB fintech client in its early stages.


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “Why MVB Financial’s fintech strategy includes strategic acquisitions”

Member Exclusive, Payments

Payments Briefing: Stripe launches fiat-to-crypto widget to simplify Web3 purchases

  • This week, we take a look at Stripe’s new fiat-to-crypto payment offering and what it means for the crypto industry.
  • We also discuss the potential benefits and pitfalls of implementing the Federal Reserve’s instant payment service, FedNow, for B2B transactions.
Ismail Umar | December 08, 2022
Lending, Member Exclusive

Lending Briefing: Customers would share data to improve their creditworthiness

  • Over 75% consumers believe that a credit score shouldn’t be the only determinant for loan eligibility.
  • In the absence of lending products that fit their needs, consumers are turning to fintechs and their families to avoid predatory loans or rejections.
Rabab Ahsan | December 07, 2022
Data Snacks, Member Exclusive

Data Snack: The dawn of bank branch 2.0?

  • The ‘death of the branch’ saga was all the rage back in 2020.
  • But now, with back-to-routine vibes emerging, it’s time to re-evaluate the role of a bank branch.
Rivka Abramson | December 05, 2022
Data Snacks, Member Exclusive

Data Snack: Millennial retail traders rise during the bear market

  • Millennials opened 46% of all new retail trading accounts in the first half of 2022, according to DriveWealth’s Global Investor Report.
  • The ability to invest with small dollar amounts was the most frequently cited motivator to start investing.
Lindi Miti | December 01, 2022
Green Finance, Member Exclusive

Green Finance Briefing: The stroll to zero – finance has a long way to go

  • At COP27, there were no commitments to phase down or reduce fossil fuel use in the final overarching deal, and there was no breakthrough in the rules of finance either.
  • GFANZ faces a serious question: what is the purpose of a net-zero alliance when members are allowed to continue investing in fossil fuel expansion?
Iulia Ciutina | November 30, 2022
More Articles