BM Technologies, a mobile-only platform that provides banking services to individuals, announced its plans to merge with community business bank First Sound Bank in a USD 23 million all-cash deal, subject to approval by regulatory authorities. Following the merger, which is expected to close in early 2022, the combined entity will be renamed BMTX Bank.

Founded in 2004, First Sound Bank is a Washington-based independent community bank with over USD 150 million in assets as of September 2021. It provides private and commercial banking services to a range of business customers, including SMEs, entrepreneurs, and not-for-profit organizations, as well as high-net-worth individuals, throughout the Puget Sound market.

Through the merger, BMTX Bank plans to leverage First Sound Bank’s bank charter to create a FinTech bank with nationwide deposit gathering capabilities, providing digital banking services to customers across the US while continuing its community banking services in Seattle. Further, it expects to expand offerings across its Banking-as-a-Service (BaaS) platform, including direct-to-consumer initiatives, personal investing, and robo-advisory services, as well as improving earnings through its new revenue stream of interest income.

BMTX Bank will be led by Luvleen Sidhu (Chairperson/CEO, BM Technologies) as chairperson and CEO, and Marty Steele (President/CEO, First Sound Bank) as Chief Operating Officer.