IBS Journal June 2015


Case study: BankMobile


BankMobile views itself as a ‘technology company with a bank charter’. What underpins the US’s First mobile-only, no fees bank and what is the business case?


BankMobile has a strong claim to be a


no fees. These are early days, as it only launched in January 2015, but it had 3000+


Its roots and technology are interesting, so too the business model which is based on a low cost base combined with two main revenue streams comprising interchange income and margins from loans. The start-up is a division of Custom-


ers Bank, which claims to have been the fastest growing bank in the US over the


in assets and a focus on small and medium sized businesses, professionals, individ- uals and families. Its main branches and -


phia, with others in New York and Rhode Island. Customers Bank claims a ‘high-tech’ approach so customers have access to ‘all the latest (and easiest to use) mobile and


online banking tools’ but also ‘concierge


by appointment, at either the customer or bank’s site, twelve hours a day, seven days a week. While purely mobile, the ethos of BankMobile is similar, combining technolo- gy and personal service. BankMobile complements its parent by


virtue of focusing on consumer banking, at least at the outset. In a rapidly changing world, the aim was to create a ‘wow’ expe- rience for customers with the new entity, says Luvleen Sidhu, chief strategy and mar-


‘antiquated and slow moving’ traditional banks. ‘Through technology, we wanted to revolutionise the banking experience, to be


words you’d usually associate with banking.’


in its sights was bank fees. As a consumer, ‘banks fee you to death’, says Sidhu, with US bank fees totalling more than the coun-


‘Through technology, we wanted to revolutionise the banking experience, to be effortless, enjoyable and empowering, not words


you’d usually associate with banking.’ Luvleen Sidhu, BankMobile


46


© IBS Intelligence 2015


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case study: bankmobile


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