GBank Financial explores merger with BankCard Services amid growing fintech influence

GBank, operating under GBank Financial Holdings Inc. (OTCQX: GBFH), with assets totaling approximately $729.3 million as of September 30, 2023, announced its Board’s initiative to potentially merge with BankCard Services, LLC (“BCS”). A special subcommittee of four disinterested directors is assigned to assess this merger, focusing on delivering an impartial review and procuring a third-party fairness opinion.

Background and Implications of the Proposed GBank and BCS Merger

This exploration of a merger comes after a longstanding business relationship between GBank and BCS. Since 2015, both entities have engaged in a sponsorship and program management agreement, contributing to the success of various prepaid programs. GBank has committed to sponsoring certain prepaid programs, while BCS has effectively managed them. BCS is known for its innovative “Pooled Player Account Powered by PIMS” and “Pooled Customer Account Powered by CIMS,” which offer FDIC-insured digital cashless transaction solutions for clients’ customers.

GBank’s Role and Business Focus in the Financial Industry

GBank, originally known as Bank of George, was founded in 2007 and has established itself significantly in the commercial banking sector with two full-service branches in Las Vegas, Nevada. Focusing primarily on Nevada, California, Utah, and Arizona, GBank’s business encompasses three core divisions: SBA Lending, Gaming FinTech, and Commercial Lending. The potential merger with BCS could mark a significant milestone in GBank’s history, potentially enriching its financial product offerings and enhancing its positioning in the growing field of Fintech solutions.