Walmart-backed startup to test banking services in the coming weeks: Sources

Walmart

One, a fintech business sponsored by Walmart Inc, will launch checking accounts for beta testing 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 broaden its offerings to include loans and investments.

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

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

The fintech business was founded in January of last year following an investment from Ribbit Capital. According to its website, Now One employs over 200 people and has more than $250 million on its bank sheet to fund future growth, which includes developing an app that will be integrated into Walmart’s in-store and digital platforms. Walmart’s stock was up 0.7% in early trade on Wednesday.

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