Radnor-based financial technology company BM Technologies has decided not to acquire Seattle-based First Sound Bank, citing the current economic environment, writes Jeff Blumenthal for Philadelphia Business Journal.

In an initial deal from November 2021, BM, formerly BankMoblie, would have paid $23 million in cash for First Sound.

The deal was expected to close in the second half of 2022 and the combined company would have been BMTX Bank. First Sound CEO Marty Steele would have served as chief operating officer, leading the community banking division.

BM would have received its own bank charter ending the need to run its banking services through a partner bank, Customers Bancorp.

BM has now signed a letter of intent with a new unnamed partner bank and will transfer deposits to that bank in the first half of 2023.

Founder and CEO of BM, Luvleen Sidhu, said the company is “better situated as a fintech with a sponsor bank without the capital needs and credit risk that an on-balance sheet strategy would entail.”

BM provides banking-as-a-service. It uses technology to offer access to checking and savings accounts, personal loans, and other financial products and services.

Read more about BM Technologies and its change in strategy at Philadelphia Business Journal.

Luvleen Sidhu is interviewed on the Planet MicroCap podcast. on Aug. 9, 2022.

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