Endless Earning, Unlocked: BM Technologies (BMTX) Introduces Cash Back Offers for BankMobile Vibe in Collaboration with Kard

Rhea-AI Summary

BM Technologies (BMTX) has launched a rewards engine for its BankMobile Vibe Checking Account, powered by Kard's rewards-as-a-service API. This new feature allows customers to earn cash back on debit card purchases from over 50,000 national, online, and local merchants. Key benefits include:

- No need to activate specific offers
- Unlimited offer usage
- Offers from popular brands like Athleta, Gap, CVS, Dell, and more
- Designed to appeal to younger Millennials and Gen Z

BMTX aims to enhance customer banking experience, drive loyalty, and support financial independence. The BankMobile Vibe Checking Account, tailored for students, boasts a 60 combined Net Promoter Score, significantly higher than the industry average of 35.

Positive

• Introduction of cash back rewards program for BankMobile Vibe Checking Account
• Partnership with Kard to provide rewards-as-a-service API
• Access to over 50,000 merchant locations for cash back offers
• 60 combined Net Promoter Score, well above industry average of 35
• 97% of partner colleges report BankMobile Vibe Checking Account is in students' best interest
• Planned enhancements to direct deposit experience and external account linking

Negative

• None.

Insights

Financial Analyst

BM Technologies' (BMTX) introduction of cash back offers for BankMobile Vibe in collaboration with Kard represents a strategic move to enhance customer engagement and potentially boost revenue. This rewards-as-a-service API integration could significantly impact BMTX's financial performance:

• Increased transaction volume: With Kard's network typically seeing a 20% increase in average transaction value and a 50% increase in spending, BMTX could experience a substantial uptick in fee income from debit card transactions.
• Customer acquisition and retention: The rewards program may attract new customers, particularly from the underserved younger Millennial and Gen Z demographics. Moreover, the potential to re-engage 15% of previously inactive cardholders could lead to improved account utilization and reduced churn.
• Competitive advantage: By offering unlimited cash back opportunities across over 50,000 merchant locations, BMTX differentiates itself in the crowded digital banking space, potentially leading to market share gains.

However, investors should consider the costs associated with implementing and maintaining this rewards program, which could impact short-term profitability. The long-term success will depend on BMTX's ability to monetize increased engagement and transaction volume effectively.

Market Research Analyst

BMTX's strategic partnership with Kard aligns well with current market trends and consumer preferences:

• Target demographic appeal: The rewards program is particularly attractive to younger Millennials and Gen Z, who are increasingly seeking value-added banking services. This could help BMTX capture a larger share of this growing market segment.
• Seamless user experience: The automatic activation of offers without user intervention addresses a common pain point in rewards programs, potentially leading to higher utilization rates.
• Diverse merchant network: With over 50,000 locations and popular brands like Gap, CVS and Dell, the program offers broad appeal and everyday relevance to users.

BMTX's high Net Promoter Score of 60 (compared to the industry average of 35) suggests strong customer satisfaction, which this new feature could further enhance. The company's focus on underserved markets and commitment to financial empowerment aligns with growing consumer demand for more inclusive and socially responsible banking options.

However, the success of this initiative will depend on effective marketing and education to ensure customers are aware of and actively use the new rewards feature. BMTX will need to monitor adoption rates and adjust their strategy accordingly to maximize the program's impact on customer acquisition and retention.

Tech Expert

BMTX's integration of Kard's rewards-as-a-service API into their BankMobile Vibe Checking Account demonstrates a commitment to technological innovation in the banking sector. This move has several implications:

• Platform modernization: The integration aligns with BMTX's stated goal of modernizing their platform architecture, potentially improving scalability and flexibility for future enhancements.
• API-driven banking: By leveraging a third-party API for rewards, BMTX showcases the power of open banking and the potential for rapid feature deployment without extensive in-house development.
• Data insights: The rewards program could provide valuable data on customer spending patterns, enabling BMTX to refine their offerings and potentially develop more targeted financial products.

The seamless integration of rewards without requiring users to activate offers demonstrates a focus on user experience and could set a new standard in the digital banking space. However, investors should consider the potential technical challenges:

• Data security and privacy concerns with third-party integrations
• The need for robust systems to handle increased transaction volumes and real-time rewards processing
• Potential for technical glitches or downtime that could affect user satisfaction

Overall, this move positions BMTX as a tech-forward player in the Banking-as-a-Service space, which could attract partnerships and drive growth if executed successfully.

BMTX Enhances Customer Banking Experience with Rewards-as-a-Service API, Providing Seamless Cash Back Opportunities, Unlimited Offers, and Access to Over 50,000 Top Merchant Locations Nationwide

RADNOR, PA / ACCESSWIRE / July 29, 2024 / BM Technologies, Inc. (NYSE American:BMTX), one of the largest digital banking platforms and Banking-as-a-Service (BaaS) providers, is thrilled to announce the launch of a rewards engine to its BankMobile Vibe Checking Account. Powered by Kard, the first rewards-as-a-service API, this innovative rewards engine aims to financially empower customers while driving loyalty among customers, giving them the opportunity to earn cash back¹ on debit card purchases from national, online, and local locations.

BMTX believes in breaking the traditional banking mold to foster inclusivity and help real people build wealth to live better lives. Partnering strategically with Kard, this new feature allows customers to earn cash back on everyday debit card purchases effortlessly, helping them save money and build a solid financial foundation for the future. Customers will benefit from a comprehensive rewards solution that contains brands they know and love, helps them discover new brands, and maximizes their savings. Particularly popular with younger Millennials and Gen Z, this reward solution provides offers to those who financial institutions may traditionally underserve.

"We are excited to introduce this new rewards program, which reflects our commitment to providing customers with not only a cost-effective banking solution but also added value through cash back Offers," said Jamie Donahue, President, and CTO of BM Technologies. "This rewards program is designed to help our customers make the most of their everyday spending, further enhancing the banking experience with BankMobile Vibe. By empowering customers for their financial futures, we aim to support their financial independence and success."

Below are the benefits of the cash back Offers feature:

• Unlike other rewards engines, users do not need to "activate" specific offers. If eligible for cash back Offers, users only need to spend money with the BankMobile debit card (according to the details of an available offer) to benefit.

• There is no limit to the number of offers that users can take advantage of.

• Offers at launch will include Athleta, Gap, Banana Republic, Old Navy, FuboTV, Hurley, and CVS. Dozens of well-known merchant brands are also in rotation, such as Dell, Intuit/Turbo Tax, Hewlett-Packard (HP), Allbirds, TicketSmarter, and Sunoco.

• There is a merchant network spanning over 50,000 locations around the U.S., including national, local, and online brands.

Kard has 47M cards in its overall network. Its issuers typically see a 20% increase in average transaction value, gain a 50% increase in spending, and re-engage 15% of previously inactive cardholders after a rewarded transaction.

"Kard is proud to welcome BMTX to our network, enhancing seamless cash back experiences for their customers," said Ben Mackinnon, CEO of Kard. "BMTX offers a unique value proposition to a market that has often been underserved by conventional providers. We're excited to help them add rewards to their suite of offerings."

The BankMobile Vibe Checking Account is a digital-only, FDIC-insured, interest-bearing checking account designed specifically for students while getting their education and beyond. BMTX has a 60 combined Net Promoter Score (NPS) versus the national average of 35 for financial institutions, showcasing its commitment to providing an exceptional banking experience. Over 97% of BMTX's partner colleges and universities across the U.S. have reported that the BankMobile Vibe Checking Account is in their students' best interest.

It offers an optional savings account, access to over 55,000 fee-free Allpoint® ATMs², the ability to get paid up to two days early and receive tax refunds up to three days early via direct deposit³ and more. Vibe 2 Friend is an added feature that allows customers to instantly send money without fees to other BankMobile Vibe customers. The BankMobile Vibe Checking Account is exclusive to students attending BMTX's over 700 college and university campuses across the U.S. After opening their account, customers can continue using their account for life. Additionally, it is a student-friendly checking account with strong protection by the U.S. Department of Education.

Jamie continued, "We are committed to BMTX's ongoing technology evolution by continuing to modernize our platform architecture and introducing innovative products and services that benefit our customers. Adding Kard's innovative rewards-as-a-service API into the BankMobile Vibe Checking Account underscores our dedication to leveraging cutting-edge technology, exemplifying our mission."

The introduction of the rewards engine is part of BMTX's broader mission to provide affordable, transparent, and consumer-friendly banking services. Coming soon, BMTX will enhance the direct deposit experience and external account linking for funding; all these changes are expected to further make the BankMobile Vibe account a feature-rich, lifelong checking and savings account that will grow with their customers.

Learn more about BMTX's cash back Offers feature by visiting this link: https://vibe.bmtx.com/

¹ Per the Cash Back Terms and Conditions.
² Allpoint ATM location, availability, and hours of operation may vary by merchant and is subject to change.
³ Early access to funds cannot be guaranteed. Limitations apply.

About BM Technologies, Inc.

BM Technologies, Inc. (NYSE American: BMTX) - formerly known as BankMobile - is among the largest digital banking platforms and Banking-as-a-Service (BaaS) providers in the country, providing access to checking and savings accounts and financial wellness. It is focused on technology, innovation, easy-to-use products, and education with the mission to financially empower millions of Americans by providing a more affordable, transparent, and consumer-friendly banking experience. BM Technologies, Inc. (BMTX) is a technology company and is not a bank, which means it provides banking services through its partner banks. More information can be found at www.bmtx.com.

About Kard

Kard is the first rewards-as-a-service API to drive loyalty for every cardholder and shopper. Our network of next-generation banks and financial institutions serves a coveted Zillennial, Millennial, and digitally advanced audience, getting merchants in front of the right customers - without spending a fortune. Kard is backed by Tiger Global, Underscore VC, Fin Capital, and s12f. The company made the 2023 Inc. 5000 list and is thrilled to be recognized as one of GGV Capital U.S.'s Fintech Innovation 50. https://www.getkard.com.

SOURCE: BM Technologies

View the original press release on accesswire.com

FAQ

What new feature has BMTX introduced for BankMobile Vibe Checking Account?

BMTX has introduced a cash back rewards engine for the BankMobile Vibe Checking Account, powered by Kard's rewards-as-a-service API.

How many merchant locations are available for BMTX's new cash back offers?

BMTX's new cash back offers are available at over 50,000 merchant locations nationwide, including national, online, and local brands.

What is the Net Promoter Score (NPS) for BMTX compared to the industry average?

BMTX has a 60 combined Net Promoter Score (NPS), which is significantly higher than the national average of 35 for financial institutions.

What percentage of BMTX's partner colleges approve of the BankMobile Vibe Checking Account?

Over 97% of BMTX's partner colleges and universities across the U.S. have reported that the BankMobile Vibe Checking Account is in their students' best interest.