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How to buy BankMobile stock when it goes public

You'll soon be able to invest in one of the largest digital banking platforms in the US.

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Fact checked

There’s a merger in the works, and once its complete, BankMobile plans to go public. Here’s how investors can prepare.

What we know

Digital banking platform BankMobile has entered into a merger agreement with Megalith Financial Acquisition Corporation — a special purposes acquisition company. Following the merger’s completion, the two companies will stand unified under the new name BM Technologies and intend to list on the New York Stock Exchange (NYSE) as a publicly-traded company.

On Monday, BankMobile also announced a forthcoming partnership with Google to offer enhanced digital bank accounts. While BankMobile will provide the FDIC-insured accounts through its existing bank infrastructure, customers will be able to manage their accounts through Google Pay, and Google will be responsible for the user experience.

How to invest in BankMobile

We don’t know much about BM Technologies’ plans for the NYSE. Investors will need to wait for the company’s official IPO filing with the Securities and Exchange Commission before information on projected share prices will be released.

Investing in fintech represents an exciting opportunity for investors. There’s an opportunity for profit, certainly. But the following drawbacks should be considered:

  • Competitive sector. The tech sector is incredibly competitive. Some companies experience rapid growth but may fold overnight in a down market.
  • Regulatory exposures. Technology companies are not immune to government jurisdiction. Investors need to stay on top of political and economic events that could impact the market.
  • Tech failure. Any company that heavily relies on technology infrastructure is at risk of lost income in the face of technological failure or service outages.

To invest in BankMobile stock when it becomes available, you’ll need to open a brokerage account. Once you have an account, you can search for the stock by the ticker symbol to purchase shares.

BankMobile compared

BankMobile, a subsidiary of Consumers Bank, is one of the biggest digital banks in the US. It was launched in 2015 and has over 2 million accounts. It employs a mobile-first banking strategy that emphasizes a high-volume, low-cost customer acquisition model.

BankMobile’s white-label banking-as-a-service platform is available to workplaces, consumer aggregators and higher education partners to offer brandable banking products and customizable customer rewards. Its repertoire of banking products and services includes checking accounts, personal loans, credit cards and student loan refinancing.

BankMobile isn’t a Better Business Bureau (BBB) accredited business but receives an A rating from the BBB. It has a TrustScore of 3.9 out of 5 on Trustpilot after 1,645 reviews and just two complaints at the Consumer Financial Protection Bureau.

Results of similar IPOs

Here’s how some similar fintech stocks performed after going public:

Cardlytics (CDLX) is a marketing platform that reports transaction-driven data. It started trading on the NASDAQ in early 2018 at $13.37. The stock saw conservative growth through most of 2019 but began to steadily climb towards the end of the year. It peaked at $98.16 in February 2020 and now trades at $68.14.

Green Dot (GDOT) is a financial holding company that specializes in prepaid debit cards. It opened on the NYSE at $44.20 in 2010. The stock went downhill for several years, hitting an all-time low of $9.06 in July 2012. From there, it enjoyed moderate growth until late 2016 when the stock began to drastically rise. In September 2018, it hit $90.93 but now trades closer to $55.13.

Q2 Holdings (QTWO) is a cloud-based virtual banking platform that launched on the NYSE at $16.13 in 2014. The stock has grown steadily since going public and currently trades at an all-time high of $102.63.

Compare online trading platforms

To buy stock, you’ll need to open a brokerage account. Compare your options using the table below to find the best fit.

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0%
IBKR Lite offers $0 commissions, and IBKR Pro offers advanced tools for professional traders.
TD Ameritrade
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or $25 broker-assisted
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$0 + $0.65/contract,
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TD Ameritrade features $0 commission for online stock, but watch out for high short-term ETF and broker-assisted trading fees.
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Compare up to 4 providers

Disclaimer: The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

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