Pennsylvania-based FinTech BM Technologies (BMTX) is set to enhance its BankMobile Vibe Checking Account with a new rewards engine powered by Kard, the first rewards-as-a-service API.
The company said that the addition aims to boost customer loyalty by allowing students to automatically earn cash back on debit card purchases at various online and local merchants.
BMTX’s initiative aligns with its mission to break the traditional banking mold, promoting inclusivity and helping individuals build wealth.
By strategically partnering with Kard, BMTX offers students a way to save money and build a solid financial foundation. The company says that the rewards engine provides cash back on everyday purchases, with no need to activate specific offers, making it particularly appealing to younger Millennials and Gen Z.
Jamie Donahue, President and CTO of BM Technologies, explained to Investing.com that “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.”
“The upcoming rewards engine addition to the BankMobile Vibe Checking Account will significantly enhance the financial experience for Gen Z students,” added Donahue.
New features announced
BMTX’s rewards engine will feature over 40,000 national and online merchant locations, including well-known brands like Dell (NYSE:DELL), HP (NYSE:HPQ), CVS, and Allbirds. Additionally, it will include a local merchant network of more than 12,000 locations across 2,000+ cities.
This comprehensive rewards solution is designed to maximize savings for students, many of whom are traditionally underserved by financial institutions.
“Students can immediately see the benefits of using their BankMobile Vibe debit card by earning cash back on everyday purchases,” said Donahue. “This reward system encourages them to use their card more frequently while helping them save money on regular expenses.”
He adds: “This may encourage students to be more mindful of where and how they spend their money. Knowing they can earn cash back at specific merchants may influence them to make more deliberate purchasing decisions.”
Donahue noted that 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.
Furthermore, he highlighted the Vibe 2 Friend feature which allows users to instantly send money without fees to other BankMobile Vibe customers.
A lifelong financial tool for students
In addition to the rewards engine, BMTX plans to enhance the direct deposit experience and external account linking for funding, further enriching the BankMobile Vibe Checking Account. These updates aim to make the account a lifelong financial tool for students, growing with them through their education and beyond.
BMTX has a strong reputation, boasting a Net Promoter Score of 60, significantly higher than the national average for financial institutions. The BankMobile Vibe Checking Account is exclusive to students at over 700 college and university campuses across the U.S., offering features like fee-free ATMs, early direct deposit, and student-friendly protections.
This account remains accessible even after students complete their education, allowing them to continue enjoying its benefits throughout their academic journey and beyond.
Donahue told Investing.com that BMTX recognizes several challenges and opportunities in attracting and retaining younger customers like Millennials and Gen Z, pointing to the inherent skepticism these groups have towards traditional banks, often due to high fees and a lack of transparency.
“Overcoming this skepticism requires offering products that are low-to-no-fee, highly transparent, and tailored to the unique needs of younger consumers,” he explained.
“Particularly popular with Millennials and Gen Z, the reward solution with Kard provides offers to those who financial institutions traditionally underserve.”
The company is actively executing its technology transformation plan to accelerate growth opportunities and enhance its competitive advantage in the higher education market.
BMTX believes the investment will reduce operational costs and fraud risk, accelerate new feature integration velocity, unlock the rollout of additional product and service enhancements, increase engagement with colleges and universities, and positively contribute to the success of BMTX’s customer-for-life strategy.
Why B2B2C approach?
Donahue explained that the B2B2C (business-to-business-to-consumer) approach through its Banking-as-a-Service (BaaS) model allows the company to strategically partner with various brands and universities.
“BMTX leverages its BaaS model to provide a proprietary, API-driven platform that allows brands and fintechs to launch fully branded financial services efficiently and cost-effectively,” he said.
Furthermore, the company is focused on improving financial literacy among Gen Z and Millennials, believing it is vital to build a solid financial foundation in college and beyond. The company currently has an Annual Financial Empowerment Scholarship that “rewards students who understand the significant role that financial empowerment plays in life.”
“Each year, a scholarship is awarded to one excellent undergraduate or graduate student who is blazing a trail and shaking things up in the world of financial empowerment, with 100% of the scholarship made payable to the award recipient's university or college to cover tuition,” he concluded.