Startup backed by Walmart to test banking services in coming weeks: Sources

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One, a fintech company sponsored by Walmart Inc, will launch beta testing checking accounts to thousands of Walmart employees and a tiny fraction of its online customers in the coming weeks, according to two people familiar with the situation.

According to the sources, the fintech intends to make the accounts available to Walmart’s 1.6 million employees within a year before expanding its services more generally. It also intends to expand its offerings to include loans and investments.

Omer Ismail, CEO of One, joined the startup last year after nearly two decades at Goldman Sachs (GS.N), where he led the consumer banking division of Wall Street firm Marcus.

Coastal Community Bank, which holds its banking charter, underpins One’s banking services. One is one walmart subsidiary that operates independently of the retail giant.

The fintech company was founded in January last year following an investment by Ribbit Capital. According to its website, Now One employs more than 200 people and has more than $250 million on its bank balance sheet to fund its future growth, which includes the development of an app that will be integrated with the in-store and digital platforms of Walmart. Walmart’s stock rose 0.7% in early trading Wednesday.

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