Customers
Bancorp in West Reading, Pa., has given formal notice to end its deposit servicing
agreement with BM Technologies.
The
agreement, which has been in place since January 2021, is set to end on Dec.
31.
The
$19.6 billion-asset Customers announced
in January that it planned to end the relationship, noting that the move
should save it $60 million a year. The company said at the time that it
expected about $1.8 billion of deposits serviced by BM Technologies to run off when
the agreement ends.
Customers
will replace the deposits with accounts gained from the
launch of its blockchain-based
instant payments token. A soft launch of TassatPay in October ushered in
$1.9 billion of deposits.
BM
Technologies, formerly BankMobile, was spun off from Customers in January 2021.
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