BM Technologies (BMTX’s) Banking-as-a Service (BaaS) Platform Qorus-Infosys Finacle Banking Innovation Awards 2024- Nominated

BMTX’s Unified Platform Infrastructure

The first phase of BMTX’s transformation efforts were completed in April of 2024. BMTX is actively executing its technology transformation plan to accelerate growth opportunities and enhance the competitive advantage that already exists with BMTX’s unique position in the higher education market. BMTX has rewritten a unified platform infrastructure to power BMTX’s student disbursement and BaaS experiences seamlessly going forward. This investment in modernization will reduce operational costs and fraud risk, accelerate new feature integration velocity, and unlock the rollout of additional product and service enhancements, along with closer relationships with college and university clients, which will increase engagement and positively contribute to the success of BMTX’s customer-for-life strategy. These investments in BMTX’s technology platform will enhance its customers' user experience and position BMTX to deepen customer relationships, increase customer lifetime value, and unlock new revenue streams.

BMTX’S BUSINESS VERTICALS

BMTX pursues two B2B2C verticals today—its higher education business and its BaaS business:

1. Higher Education

BankMobile Disbursements & BankMobile Vibe—BMTX has been providing white-labeled banking services in higher education since 2016. It has forged relationships and provides disbursement services at approximately 750 college and university campuses across the country, introduce them to BMTX, and offer them a choice to open a competitively positioned BankMobile Vibe Checking Account.

The BankMobile Vibe Checking Account is a digital-only, FDIC-insured, interest-bearing checking account designed specifically for students. It offers an optional savings account, access to over 55,000 fee-free Allpoint® ATMs, the ability to get paid up to two days early and receive tax refunds up to three days early via direct deposit, cash back (coming soon), and more. Vibe 2 Friend is an added feature to instantly send money without fees, to other BankMobile Vibe customers. Additionally, it is a student-friendly checking account with strong protection by the Department of Education.

During the first quarter of 2024, BMTX disbursed over $4.3 billion in refunds to students. Of the $4.3 billion, approximately 12% or $523 million was disbursed into BankMobile Vibe checking accounts. One out of three students in the U.S. receive refunds through BankMobile Disbursements. BMTX is the engine through which several hundred thousand new accounts are opened annually, helping students across the country better save, grow, and manage their money.

BMTX’s deeply embedded campus relationships allow for customer acquisition and a “customer for life” strategy. BMTX has exclusive, long-term, and contractual campus relationships and a Signed Student Enrollment (SSE) retention rate of over 99% in 2023 and an average client tenure of over five years. The typical new contract term is three to five years with an active pipeline of approximately one million students.

Due diligence is completed every two years by schools who review the BankMobile Vibe Checking Account and confirm that the low fees associated with the BMTX account are consistent with or below the prevailing market rates (see comparison chart). 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. BMTX has disbursed approximately over $700 million in tax refunds and stimulus payments to its customers since March 2020 in BankMobile Vibe Accounts and T-Mobile MONEY and is a strong indicator of primary banking relationships.

BMTX is committed to delivering 100% of students’ refunds, providing students with clear choices, offering excellent customer service (through a bilingual customer support line (open 364 days a year), online FAQ, email, and social media), and never selling or sharing student data.

BMTX has customer satisfaction rates that have reached as high as 5.0 on the App Store and Google Play, at one point, and a 60+ combined NPS score Net Promoter Score (NPS), versus the national average of 36 for financial institutions. With a rating of 4.6, BMTX surpasses the average big bank score of 1.25 to 2.50 on TrustPilot.com, where customers provide ratings and comments independently. This rating underscores the high level of satisfaction among BMTX’s customers. BankMobile banking products and services are provided by First Carolina Bank, Member FDIC & Equal Housing Lender.

BMTX will soon add a rewards engine to its BankMobile Vibe Checking Account in partnership with Kard, the first rewards-as-a-service API to drive loyalty for every cardholder and shopper. The rewards engine will allow BankMobile Vibe customers to earn while they spend at both local and national merchants. The additional benefits of the rewards engine are highlighted below: • Unlike other rewards engines, users do not need to “activate” specific offers! If eligible to take advantage of cash back offers, users only need to spend 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 a user can take advantage of. • Kard National/Online Merchant Network – 40,000+ locations around the U.S. • Kard Local Merchant Network – 12,000+ locations around the US, venues in 2,000+ cities.

BMTX will also be enhancing the direct deposit experience and external account linking for funding; all these changes are expected to make the BankMobile Vibe Account a feature-rich, lifelong checking and savings account that will grow with the Vibe customer base.

BMTX Identity Verification (IDV)— In Q1 2024, BMTX launched its first school on its new student identity verification service, BMTX Identity Verification (IDV). IDV is a Software as-a-Service (SaaS) revenue product that assists universities in mitigating fraud vulnerabilities during the student enrollment process. Universities will be able to select risk level preferences, and leverage robust AI tools to enhance employee productivity, detect fraud, and improve customer service. As part of BMTX’s improved technology stack and service offering, IDV increases stickiness and lifetime value of existing higher education relationships.

2. BaaS T-Mobile MONEY—BMTX’s BaaS offering is best exemplified through its partnership with T-Mobile (the T-Mobile MONEY checking and savings account), a white-labeled consumer banking program launched with a top-consumer brand to their 60 million members in late 2018. T-Mobile and BMTX won “Best FinTech Partnership” in the 2021 Finovate Awards for their ingenuity in driving innovation forward and bringing new ideas to life. The Best FinTech Partnership award is given to companies who are working together to build something new and groundbreaking—a partnership that allows them to do something together that is greater than the sum of their parts. In this case, that innovation was T-Mobile MONEY—a no fee, no minimums, high interest-bearing checking account with access to over 55K ATMs and $50 fee-free overdraft protection. BMTX continues to expand and significantly grow this relationship.

In recent years, BMTX launched a proprietary P2P payment offering into its ecosystem to allow seamless money movement, increased APY from 1.50% APY to 2.50% APY for all accounts and offers up to 4.00% to certain customers based on eligibility, and released an exclusive offers program for T-Mobile MONEY customers. T-Mobile MONEY account volumes are increasing YoY, and deposit amounts have far exceeded similar traditional de novo banks.

BMTX’S BAAS PLATFORM DEEP-DIVE

BMTX’s entire ecosystem was built around its ability to present and consume APIs. BMTX believes that success in the new digital age in financial services will depend highly on its ability to integrate and embed its functionality into other ecosystems. BMTX’s platform can also seamlessly integrate with partners to bring a wide breadth of services to its clients.

BMTX embeds Artificial Intelligence (AI) and Machine Learning (ML) in every operation corner to ensure an optimal customer experience, reduce costs, and accelerate procedures. They are foundational elements of BMTX’s platform strategy. BMTX leverages AI and ML in nearly every technical function, including its operations, platform management, information security, and fraud prevention systems. BMTX’s deployment of these technologies has accelerated its time to market and improved operational resiliency. BMTX has found that AI and ML are extremely powerful when used synergistically to solve efficiencies in its operations.

One of the leading design principles in BMTX’s product and technology organizations is a “frictionless” experience for its customers. From BMTX’s years of experience in the BaaS industry, friction is the enemy of adoption. BMTX devotes considerable time and resources to addressing how the customer experience might be impacted by new design, features, and functions with its delivery. BMTX listens to its customers, applies their feedback, and acts on it quickly to maintain a frictionless experience.

With Azure Microservices, BMTX can easily manage new feature releases, updates, and bug fixes in individual components without redeploying the entire application. It automates software delivery workflow with a continuous integration/continuous deployment (CI/CD) pipeline like GitHub Actions. BMTX is able to scale with demand, and it can scale individual services and subsystems based on resource needs without scaling out the entire application. It can also include a higher density of services within a single host using a container orchestrator like Azure Kubernetes Service (AKS) or Azure Red Hat OpenShift. It can replace or retire individual services without affecting the entire application. Unlike the traditional monolithic application models, microservices platforms use patterns such as circuit breaking to tolerate individual service failure, improving security and reliability.

For BMTX, integration is about connecting disparate functions from other platforms and ecosystems via microservices in a workflow at a cloud scale. This business integration must be seamless to the partner, client, and the end-user. BMTX aims to integrate its deep banking functionality and expertise with its end consumer. It achieves this through microservice architecture. Microservice applications are composed of small, independent, and scalable customer-focused services that communicate with each other using standard protocols with well-defined interfaces. They are an independently deployable unit of code that is the opposite of the traditional massive and complex approach to integration. Azure Microservices uses Azure Service Fabric as its platform to utilize infrastructure resources efficiently and solve business problems using a team microservices approach.

Data, Privacy, & Security BMTX ensures access to robust, trusted data and technology, both of which can deliver immediate benefits—including helping to mitigate fraud and other financial crime risks and improving client experiences. The benefits of embracing technology and moving to digital processes do not end there. Automation helps boost BMTX’s efficiency, lowers costs, and frees up time for compliance professionals to focus on higher value-added areas of the business. It also reduces manual keying errors, leading to better compliance posture.

BMTX’S CURRENT AND FUTURE BAAS OUTLOOK

BMTX Continues to Succeed in Challenging Times Rising interest rates and the threat of an economic slowdown are hanging over the industry. BMTX is carefully navigating the changing rate landscape to ensure it is still providing services at competitive rates. It is a balancing act that requires precise data/analytics to help shape the company’s direction. BMTX relies on its investment in the Azure Data Explorer dataset for real-time analysis of large volumes of data streaming from applications/platforms. BMTX’s data teams can ask questions and iteratively explore data on the fly to improve products, enhance customer experiences, and boost operations. BMTX can quickly identify its data patterns, anomalies, and trends to manage these challenging times.

Competitive BaaS Market Positioning BMTX is strongly positioned in the fast-growing global BaaS market. BaaS is enabled by the seamless integration of financial services and products into other customer activities, typically on non-financial digital platforms, offering a tremendous opportunity for growth. Those who utilize BaaS include incumbent financial organizations, FinTechs, financial services, and non-financial organizations including e-commerce, travel, retail, health, and telecom. The global revenue generated in the global BaaS market is projected to increase 66% from 1.2 billion in 2021 to $25.5 billion in 2026. This market is experiencing rapid digital transformation, innovative new players, the presence of application program interfaces (APIs), and lower costs of acquisition. BMTX offers a complete digital banking platform and competitive positioning including: • Extreme partnership tailoring and deep customer experience integration. • A full BaaS model and a complete white label digital banking platform including compliance, deposit operations, fraud management, and customer care. • Branded digital banking, offering a full white label digital bank app on mobile and web. • Revenue share and great consumer prices with partnerships that drive low CAC and blended offers. • BMTX’s ability to customize and integrate a fully branded front- and back-end experience is a differentiated approach and key to partners who have a strong brand relationship with their customers. • BMTX’s partnership model offers a turnkey, fully branded digital banking platform, with deep experience and a long history in B2B2C banking. • BMTX offers superior service, delivering executive oversight and fully supported implementation and delivers interchange revenue share potential from all account activity.

In 2023, BMTX won Tearsheet’s Big Bank Theory Award for Best Banking-as-a-Service Platform and FinTech Futures Banking Tech Awards USA for Excellence in Tech for Best Embedded Finance System—as-a-Service. BMTX was also selected as winner of the 2023 FinTech Breakthrough Awards for Best Banking Infrastructure Software and the bronze Stevie American Business Awards for Best FinTech Solution in 2024. BMTX reported First Quarter Results on May 15, 2024. Higher Education Vertical: During the first quarter ended March 31, 2024, the Company retained 99% of its Higher Education institutional clients. The Company signed 3 new colleges and universities in Q1 2024, providing approximately 16,000 additional students access to BankMobile Disbursements and the BankMobile Vibe Checking Account. During the first quarter of 2024, the Company disbursed over $4.3 billion in refunds to students. Of the $4.3 billion, approximately 12%, or $523 million, was disbursed into BankMobile Vibe checking accounts. BMTX continues to see higher education student enrollment numbers rebound, post pandemic, in the community college segment which is increasing application flow and customer acquisition opportunities. Higher Education average serviced deposits and ending serviced deposits totaled $537 million and $535 million, respectively, for the three-month period ended March 31, 2024. Debit card point of sale spend remained strong increasing by 3% during Q1 2024 as compared to Q1 2023. Deposits and spend per 90-day active account during the first quarter of 2024 were $2,025 and $2,396, respectively. Additionally, the first quarter marked the completion of BMTX’s technology transformation with an updated mobile app and web interface, improving user experience and customer feature set. BaaS Vertical: Annualized debit card spend for highly active BaaS users (those with both direct deposit and a minimum of five customer driven transactions per month) was $20,100, and the average deposit balance per account was $1,668 at March 31, 2024. This very attractive cohort makes up approximately 23% of active accounts at March 31, 2024, as compared to 21% in the year-ago period. BaaS average serviced deposits and ending serviced deposits totaled $290 million and $284 million, respectively, at March 31, 2024 and debit card point of sale spend during Q1 2024 increased 1% from Q1 2023. First Quarter 2024 Operating Highlights • Average serviced deposits totaled $828 million and ending serviced deposits totaled $820 million at March 31, 2024. • Debit card spend totaled $809 million in Q1 2024. • There were approximately 100 thousand new account sign-ups in the first quarter 2024. • Higher Education Organic Deposits (deposits that are not part of a school disbursement and are indicative of primary banking behavior) for the three months ended March 31, 2024, totaled $449 million. • Full 1Q 2024 Earnings webcast: BMTX 1Q 2024 Earnings Conference Call | BM Technologies, Inc. (bmtxinc.com)

BMTX's Websites & Social Media Links: • Websites: o https://www.bmtx.com/ o https://ir.bmtxinc.com/ o https://vibe.bmtx.com/ o https://disbursements.bmtx.com o https://www.t-mobilemoney.com/

• Social: o https://www.linkedin.com/company/bmtxinc o https://twitter.com/bmtxinc o https://www.instagram.com/bmtxinc/ o https://www.facebook.com/bmtxinc/ o https://www.tiktok.com/@bmtxinc?lang=en o https://www.youtube.com/c/BMTechnologiesIncBMTXfkaBankMobile