Following this announcement, Mercury plans to finish the migration of its customers from Evolve Bank to other partners, such as Column National Association or Choice Financial Group. The businesses that migrate away from Evolve Bank will have uninterrupted access to Mercury during the process, according to the fintech’s representative.
Client migrating to the new banks will have to complete a KYC process, verify the accuracy of their information, and agree to new terms and conditions. Evolve and Mercury will work together to ensure an easy transition. Once they switch to a different bank partner, Mercury’s customers will see improvements to their experience such as faster ACH and wire transfers, as well as the ability to accept wired in foreign currencies.
Mercury partnered with Evolve Bank in 2019 when the business was a startup. As a neobank, it aimed to offer software-improved banking services such as checking accounts and cards to businesses. Since the company lacked a banking license, Mercury needed to find a bank to operate behind the scenes to hold customer funds and facilitate the movement of money. This partnership was facilitated by the now-bankrupt BaaS provider Synapse Financial Technologies. In 2023, Mercury moved to a direct connection with Evolve Bank.
In June 2024, Evolve Bank received a Federal Resolve enforcement action concerning its risk management practices. Evolve is one of several fintech sponsor banks that were subjected to enforcement actions related to oversight of third-party relationships.
The bank stated that it does not expect any account interruptions during the migration and that the process will not interfere with Evolve’s ongoing de-risking plan of its Open Banking relationships, which began over a year ago, and resulted in a more rigorous onboarding process for new customers and improved compliance oversight.
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