BM Technologies (NYSE: BMTX) Disburses $377 Million in Government Funds to its Customers Since March 2020

Rhea-AI Summary

BM Technologies (BMTX) reported disbursing $377 million in government funds since March 2020, indicating strong customer reliance on their digital banking services. The company offers no-fee accounts while traditional banks are projected to collect over $30 billion in fees this year. As of now, BM Technologies serves over two million account holders and utilizes a multi-partner distribution model through its BaaS platform. Recent collaborations with T-Mobile and Google aim to enhance its service offerings, further solidifying its market presence.

Positive

• Disbursed $377 million in government funds to customers since March 2020.
• Serves over two million account holders, indicating significant market reach.
• No-fee and low-fee accounts contrast traditional banks' high fee structures.
• Strategic partnerships with T-Mobile and Google to expand service offerings.

Negative

• None.

Radnor, PA, April 07, 2021 (GLOBE NEWSWIRE) -- BM Technologies, Inc. (NYSE American: BMTX, BMTX.W), one of the largest digital banking platforms in the country, announced it has already disbursed $377 million in government funds to its customers since March 2020. This indicates that customers are viewing their BM Technologies (BMTX) account as their primary bank. The government funds, including stimulus payments and tax refunds, have been made available to customers up to three days early.* Customers are earning interest on these funds in BM Technologies’ (BMTX) interest-bearing checking accounts.

Launched in January 2015, BM Technologies (BMTX), formerly known as BankMobile, is on a mission to provide a compliant, digital-first banking experience that is simple, affordable and consumer-friendly. The company serves over two million account holders.

While banks were urged to waive fees by federal regulators in 2020, they are expected to collect over $30 billion in fees from last year, with the average charge being $33.47.** In contrast, BM Technologies (BMTX) has no-fee and low-fee accounts.

Additional features of BM Technologies’ (BMTX) accounts include: optional interest-bearing savings accounts; access to more than 55,000 fee-free Allpoint® ATMs; early payday; money management tools; robust mobile apps; and credit such as personal loans and credit cards.

“Our biggest priorities at BM Technologies are financially empowering our customers and using technology to provide them with the best banking experience,” stated Luvleen Sidhu, Chair, CEO and Founder of BM Technologies (BMTX). “During these difficult times, we know how crucial funds are and we are pleased to have already provided our customers with hundreds of millions of dollars of government payments, more quickly than traditional banks. And while these traditional banks have still collected monumental overdraft fees during the pandemic, we have focused our efforts on continuing to build a customer-centric banking experience that does not over-fee its customers.”

BM Technologies (BMTX) has a disruptive, multi-partner distribution model, known as Banking-as-a-Service (BaaS). Today, BM Technologies (BMTX) provides its BaaS platform to colleges and universities through BankMobile Disbursements, which serves approximately one in every three college students in the United States.

Additionally, BM Technologies, Inc. (BMTX) expanded its BaaS strategy with T-Mobile for the launch of T-Mobile MONEY and also executed an agreement with Google to introduce digital bank accounts, which will be available to its customers.

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About BM Technologies, Inc.

BM Technologies, Inc. (NYSE American: BMTX, BMTX.W) is among the largest digital banking platforms in the U.S., providing access to checking and savings accounts, personal loans, credit cards, and financial wellness. It is focused on technology, innovation, easy-to-use products, and education with the mission of being “customer-obsessed” and creating “customers for life.” The BMTX digital banking platform employs a multi-partner distribution model, known as “Banking-as-a-Service” (BaaS), that enables the acquisition of customers at higher volumes and substantially lower expense than traditional banks, while providing significant benefits to its customers, partners, and business. BMTX currently serves over two million account-holders and provides disbursement services at approximately 725 college and university campuses (covering one out of every three students in the U.S.). BM Technologies, Inc. is a technology company and is not a bank, which means it provides banking services through its partner banks. More information can also be found at https://ir.bmtxinc.com/.

*Subject to description and timing of government tax refund and stimulus payments sent via direct deposit. We typically make funds available the business day received, which may be up to three days earlier than scheduled.

**CNBC: “Banks will collect more than $30 billion in overdraft fees this year. Here’s how to avoid them”