First Carolina Bank (“Bank”) has announced a new partnership with BMTX, a financial technology company and a subsidiary of BM Technologies.
Both companies have entered into a Deposit Processing Services Agreement for a partnership in which the Bank will be the exclusive provider of deposit accounts for customers of BMT’s BankMobile Higher Education Program, subject to regulatory approval.
The Higher Education Program primarily provides students with valuable and differentiated bank accounts and debit cards that, among other features, allow students to directly receive money from their college or university due to refunds from financial aid awards, grants, and scholarships, as well as paychecks and other payments. BMT is a leader in facilitating this activity for students as evidenced through its relationships with over 750 higher education campuses nationwide, many of which are situated in the Bank’s marketing footprint.
“Our Bank is committed to bringing greater access, convenience, stability, and ultimate financial literacy to students, and being involved in this program allows us to further that mission,” Ron Day, President and CEO, said. “In partnering with BMT, we are matching our strategic intent by aligning with the best in the business. Subject to the receipt of regulatory approval, we anticipate our deposit balances will increase by approximately $525 million once we onboard the Higher Education Program customers. This will become a part of our core funding strategy and further strengthens our balance sheet to meet the growing demand for the Bank more effectively in the markets we serve. Additionally, this partnership will enhance our digital capabilities at a time when our overall customer base is demanding more in terms of technology and ease of access to their financial services through their relationship with us.”
Wedbush Securities Inc. initiated the partnership discussions and served as exclusive financial advisor to First Carolina Bank. Covington & Burling LLP served as legal counsel to First Carolina Bank.