Join us Dec. 1-3 in New Orleans for the Digiday Programmatic Marketing Summit
Seven years after Moven came out with its Mint-like budgeting app and debit card, it’s establishing a joint venture with Japanese financial services giant SBI Holdings. The goal: To buy a bank.
The U.S. company is about to cross five million users globally this year, said CEO Brett King, who has plans to make Moven the first real U.S. challenger bank, a startup with a banking license, which would be called MovenBank. The U.S. is rife with “neobanks,” similar companies like Simple, Varo Money and Chime that have a partner bank in the background. But the FDIC hasn’t issued new banking licenses since 2008 and the Community Reinvestment Act requires that banks have branches. Until the OCC Fintech Charter comes out, there isn’t a regulatory framework for challenger banks in the U.S.
Banks buying startups isn’t anything new. But for financial technology startups, looking to scale or for a license to take deposits, buying a bank it’s a faster route to market than other solutions.
Moven is in talks with “a couple” of small banks with about two branches and healthy balance sheets about a potential acquisition in which the banks continue to run the branches and Moven focuses on the digital banking product.
More in Marketing
How Kind snack bars is using AI to curb creative, marketing costs at business ‘inflection point’
Adopting generative AI and synthetic audiences, Kind North America’s marketing overhaul is cutting creative time and shifting agencies into strategic partners.
As would-be buyers and critics circle, WPP’s siege mentality deepens
The London holding company is beset by challenges and critics. A bunker philosophy and pushback may be emerging in response.
‘We’re in a league of our own’: How X is planning to take over the World Cup, starting with Draw Day
The platform is using the tournament’s draw as an early proving ground for a broader strategy to reassert its creator content around live events.