HMBradley Partners with NYCB as New Sponsor Bank Replacing Hatch Bank

HMBradley, a neobank focused on savings-oriented banking, announced New York Community Bank (NYCB), operating as a division of Flagstar Bank, as its new sponsor bank partner. The move replaced Hatch Bank, which had previously served as HMBradley's banking partner. The transition was driven by the need to handle rapid deposit growth, with HMBradley holding nearly $600 million in deposits at the time.

With NYCB's backing, HMBradley was able to end a 16-month-long waitlist that had accumulated over 25,000 prospective users. The partnership supported HMBradley's ambition to scale deposits to $1 billion. CEO Zach Bruhnke highlighted the importance of having a well-capitalized sponsor bank partner to sustain growth.

The deal underscores the critical role sponsor bank selection plays in neobank scaling strategies and came amid heightened regulatory scrutiny of bank-fintech partnerships in early 2023.