With Latest Merger, Walmart is Set for its Launch into Financial Services
Walmart-backed fintech startup Hazel announced that it plans to acquire the fintechs Even and ONE, setting the stage for Walmart to open up financial services and products to its 1.6 million U.S. associates and 100 million plus customers. The company plans to bring on Omer Ismali as CEO of the merger under the ONE brand.
Ismali climbed the ladder at Goldman Sachs in both investment and consumer banking prior to becoming the CEO of a NewCo backed by Ribbit Capital, the leading investor in Hazel.
“Consumers everywhere are being left behind by the world of financial services,” said Ismail. “Our vision is clear, build on Even and ONE’s success to offer a product that offers consumers the best way to spend, the best way to access their wages, and helps millions save and grow their money. I’m looking forward to partnering with two stellar leaders in Brian and David to improve the financial lives of tens of millions of consumers.”
David Baga and Brian Hamilton are the former CEO and Co-founder of Even and ONE respectively. The two will remain in leadership roles at ONE according to a press release from Walmart.
The merger will form a company of over 200 employees whose CEOs and upper management will also remain in lateral positions. The release also says that ONE will get their balance sheet stuffed with $250M to “fund future growth.”
“Walmart is constantly looking for new ways to deliver on our core mission of helping our customers save money and live better,” said John Furner, President and CEO of Walmart U.S. and board member of the reemerged ONE. “Customers have made it clear that they want more from us in the financial services arena.”
“Creating a simple, personalized app that allows users to manage their money in ONE place is the natural next step toward fulfilling that,” Furner continued.
Judging by the release, it looks as if Walmart is planning to market this both internally and externally. As America’s largest employer, they could easily become a player in financial services if they hosted the technology to manage the accounts of their employees alone.
Furner spoke further on the intentions of Walmart to offer up financial services to the seemingly underbanked. “We couldn’t be more excited about what this will mean for Walmart customers, associates and consumers everywhere as we try to help empower millions to improve their financial lives.”Last modified: February 2, 2022
Adam Zaki was a Reporter at deBanked.