Walmart-backed fintech to test banking services in coming weeks – sources

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The logo of a Walmart supermarket is seen during the outbreak of the coronavirus disease (COVID-19), in Rosemead, California, U.S., June 11, 2020. REUTERS/Mario Anzuoni

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Sept 14 (Reuters) – One, a fintech company backed by Walmart Inc, will introduce checking accounts to thousands of Walmart employees and a small percentage of its online customers for beta testing in the coming weeks, said two people familiar with the matter.

The fintech aims to make the accounts available to Walmart’s 1.6 million employees within a year before rolling out the services more widely, the people said. It also hopes to expand its offerings to loans and investments.

Bloomberg News earlier reported on the plans. Walmart declined to comment.

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Omer Ismail, CEO of One, joined the firm last year after nearly two decades at Goldman Sachs (GS.N) and heading Marcus, the Wall Street giant’s consumer banking business.

One’s banking services are backed by Coastal Community Bank, which holds its banking charter. One is majority-owned by Walmart, but operates independently of the retail giant.

The fintech startup was formed after an investment from Ribbit Capital in January last year. Now One employs more than 200 employees and is capitalized with more than $250 million on its balance sheet to fund future growth, which includes building an app that will be integrated with Walmart’s in-store and digital channels, according to its website. Walmart shares rose 0.7% in morning trade on Wednesday.

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Reporting by Uday Sampath in Bengaluru and Siddharth Cavale and Lananh Nguyen in New York; Editing by Shounak Dasgupta and David Evans

Our standards: The Thomson Reuters Trust Principles.

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