Q2 2021 Bm Technologies Inc Earnings Call
Yeah.
Revenue.
Okay.
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Yes.
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Ladies and gentlemen, thank you for standing by and welcome to the B M technology second quarter 'twenty 'twenty One earnings conference call. At this time, all participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session.
A question over the phone you would need to press star one on your telephone.
Asked a question via the web and to your question via the chat box.
Now like to hand, the conference over to your Speaker today, Mr. Bob Ramsey. Thank you. Please go ahead Sir.
Thank you Tania and good morning, everyone and thank you for joining us for <unk> Technology's second quarter 2021 earnings webcast. Our earnings release was issued last night and we have posted an investor presentation. This morning.
These documents are posted on the Investor Relations page of the company's website at IR Dot BMT Si and C dot com or Investor presentation includes important details will be walking through on this morning's webcast and I encourage everyone to pull a coffee.
Before we begin we'd like to remind you that some of the statements that we make today may be considered forward looking.
Forward looking statements are subject to a number of risks and uncertainties that may cause actual performance results to differ materially from what is currently anticipated.
Please note that these forward looking statements speak only as of the date of this presentation and we undertake no obligation to update these forward looking statements in light of new information or future events, except to the extent required by applicable securities laws.
Please refer to our SEC filings, including our form 10-K, and 10-Q for a more detailed description of the risk factors that may affect our results copies may be obtained from the SEC or by visiting the Investor Relations section of our website.
At this time it is my pleasure to turn the call over to our Chief Executive Officer Loveline severe lovely in the floor is yours.
Thanks, Bob Good morning, everyone.
You for joining the <unk> technology second ever earnings call. We are excited to be here. This morning and are grateful for your interest in the NPS.
Joining me today on the call is Bob Ramsey, our CFO also joining us is our CFO.
Bob Daigle, and our CTO, Jamie Donahue, who are on the line and available during the Q&A section.
So let's get started.
I am delighted to report record results for the second quarter and first half of 2021.
As a reminder, the second and third quarters are seasonally slower for us since a lot of our students are not on campus and receiving refunds.
Despite the seasonality we reported strong results we.
We are pleased to report Q2, 2021, EBITDA of $5.2 million up 11 times year over year, and core Q1 revenues of $22.7 million or 46% year over year increase.
Both Bob and I will later provide more details about the financials, but before that I wanted to share about the <unk> technology, let's start on slide three.
For those of you joining for the first time BMT Act as one of the largest digital banking platforms in the country today with over 2 million accounts.
We are on a mission to make banking better for millions of Americans by providing a more affordable transparent and consumer friendly banking experience.
We were one of the first neo banking Fintech to go public earlier this year and are one of the first to have a profitable business model.
We pursue our b to B to C. At a banking as a service strategy, which allows us to acquire bank customers at high volume and at very low cost.
Today, we are acquiring customers at less than $10 versus the traditional bank, which is acquiring customers in the 300.500 dollar range.
This provides a tremendous competitive edge for us relative to not only traditional banks, but also from both challenger Bank Whats you are having to spend an exorbitant amount to acquire a bank customer.
At the same time, we are enabling our partners to offer fully branded financial services products to their customers and to their employees to better attract engage and retain them.
It also provides them with a strong point of differentiation and a relatively commoditized industry.
And new revenue stream.
That said, we enable them to offer modern fully branded banking services.
A fraction of the cost and then a fraction of the time it would take them to roll this out on their own and all under their own brand.
Additionally, our technology can also be used by community banks and credit unions to accelerate their digital strategies with state of the art mobile and web based banking yeah.
And we can also provide back office banking operation compliance fraud, and risk management and customer service support if needed.
Today, we are leveraging our b to B to C strategy in three main vertical.
First being higher education, where we have relationships with approximately 735 campuses across the country, which allows us to touch one in every three college bound students and introduce them to be in technology and offer them a choice to open a bank mobile vibe checking account through our partner.
Bank.
It is through this vertical that we disbursed $10 billion to $12 billion, a year of which approximately $2 billion flow into bank mobile by checking account and.
And we are opening several hundred thousand new accounts each year through this channel.
Additionally, we continue working towards the launch of our co branded bank mobile Googolplex accounts, which we expect will result in more students choosing a bank mobile account to receive their refunds.
The second vertical as our white label banking business, which today is best exemplified by our partnership with T mobile and with the launch of our checking account product T mobile money.
We continue to expand and significantly grow this relationship.
Lastly, our workplace banking vertical where we distribute the bank mobile suite of banking products to employees across the country as well as financial wellness offering.
We continue to make solid progress in all three of these vertical.
As I mentioned, we are a mission driven company first and foremost and are dedicated to our vision of making financial services more accessible and affordable and to financially empower millions of Americans.
From a financial standpoint, our vision is to create a company with a market cap of 500 million to a 1 billion over the next three to five years by executing on the strategy that we've laid out and building upon the strong foundation, we already have.
Flipping to slide four.
Like I stated earlier I am excited to be able to share with you our record Q2 results.
Our core EBITDA is up 11 times year over year with a Q2 'twenty 'twenty, one EBITDA of $5.2 million.
Our core revenue improved 46% year over year with Q2 revenues of $22.7 million.
Additionally, we continued to add new accounts to our portfolio and added approximately 200000, new accounts in the first half of this year.
Moving on to slide five.
Here, we graphically show our strong year over year growth in revenue and EBITDA.
Core revenue for the first half of 'twenty 'twenty, one totaled $46.8 million.
$15.6 million or 50% increase from the first half of 'twenty 'twenty.
Core EBITDA for the first half of 'twenty 'twenty, one totaled $13.8 million.
$15.3 million increase from the first half of 2020.
The fact that our core EBITDA growth was so close to our core revenue growth reflects our expense control over the last year.
On slide six.
You can see that our average servicing deposits totaled one 6 billion in Q2.2021.
126% increase.
<unk> Q2.2020.
Specifically average new business service deposits increased 616% compared to Q2.2020.
Which is a $848 million increase.
As a reminder, our new business segment includes our white label and workplace banking vertical.
And our student business organic deposits, which as a reminder, these are deposits that are not part of the school disbursement increased 29% compared to the first half of 2020 to $1.2 billion, indicating strong primary banking behavior.
Additionally, debit card spend was $828 million in Q2, 2021, a 19% increase compared to Q2.2020.
In particular, new business debit spend increased 91% compared to Q2.2020.
And the higher education vertical we disbursed six $4 billion to students in the first half of this year.
<unk> over 900 million its bank mobile by the town held at our partner base.
Lastly, we continue to have some tailwind from federal stimulus with approximately $52 million and stimulus flowing into our accounts during the quarter.
Moving to slide seven.
We continue to see strong performance in the overall business or revenue per active accounts increased 41% year over year to $45.
Again, this isn't an annualized second quarter revenue number.
The strong revenue per account metric is driven by healthy average balances and spend across the portfolio.
For example, average deposit balances per active account and our new business segment increased 335% year over year from around 1900 to over 8000 today.
Average balances in our student active accounts also increased 15% year over year with average balances over $1700 today.
Similarly on the expense side, our new business active accounts quarterly spend increased by 16% to approximately <unk> hundred dollars.
Our student business active account quarterly spend is even higher at close to $2000, a 21% year over year increase.
Again, we couldn't be more excited about our record financial results and I will now pass it on to our CFO, Bob Ramsay for some additional financial update.
Thank you Edwin.
I'll start on slide eight which shows the growth in our new business, which as a reminder includes everything outside of our legacy higher education business.
Namely white label and workplace banking.
We reported strong growth of 553% and ending service deposits, which was over 600% on average.
91% growth in debit card spend this growth reflected both at 59% increase in the number of accounts as well as improving per account profitability as shown on the bottom of this slide our deposits and spend per account increased by 335% and 16%.
Respectively over the last year.
Slide nine shows some of the K P.
Our consolidated business, which includes student white label and workplace banking our.
Our debit card spend overall increased 19% from the year ago period, and average service deposits increased 126%.
Yeah.
Second quarter, we reported $22.7 million or so.
Core revenues, which was up nearly 50% 17.5 million in core expenses and revenues less this quarter expenses resulted in $5.2 million in core EBITDA, which is a really strong improvement from EBITDA in the year ago period, which was negative half a million dollars I'd like to.
<unk> mentioned, we repaid the $5.4 million in debt outstanding on our line of credit in the second quarter as well and is today at June 30, we have no debt outstanding.
We're pleased with our second quarter financial results and are positioned well for the remainder of the year.
With that I'll give it back to you.
Thank you Bob.
On slide 11.
I would now like to provide you with a few key business updates.
And the higher education vertical in addition to the positive trend in account level deposits and spend which I have already covered we continue to see additional positive trends.
For example, we added eight new partnerships with colleges and universities across the U S. In the first half of this year.
Over 47000 additional students now have access to bank mobile disbursement and the bank mobile vibe checking account.
Additionally, we retained almost 100% of our higher education institution, this year and dispersed $6.4 billion and refunds to students of which as I mentioned already over $900 million flowed into bank level by the accounts held at our partner Bank.
We also recently announced plans to serve banks and credit unions looking to expand their digital presence.
And leverage BMT acts is proprietary banking technology stack.
With regards to new strategic partnerships. This quarter BMT Act also announced a product partnership with array for credit monitoring and identity protection, which we will be integrating into our white label offerings.
We also announced a new workplace banking distribution partner go out Jay a direct to consumer insurance and financial marketplace.
The mtx's workplace banking offering will be available to go ask Jay is approximately 3 million users in the U S.
Lastly in the new business side. In addition to the strong account metrics that I have already shared I would like to share that in Q2.2021 highly active users.
Deposit balances of over 40.
1000.
Okay.
Terry Technology stack.
We continue to be in discussion with retailers grocers, Fintech and bank among others and hope to announce a partnership in the coming months.
Next on slide 12.
We continue to have tremendous growth opportunities in front of us.
And our student business, we continue to work on expanding the number of college relationships that we have which gives us access to more students who can potentially convert who we can potentially convert to bank account customers.
We are also investing in marketing to drive more conversion and are grateful to have our new director of marketing join us from Green Dot and our new director of business development joined us from Amex to help us in these areas.
With regards to White label, we continue to further expand into new channels and enhance our product offering for T mobile money and continue to work on our pipeline for new partners.
Now with our public currency. We are also open to exploring possible strategic M&A opportunities of one plus one can equal three.
Or more and lastly, we continue to expand our product offering. So we have the best in class digital banking platform.
On Slide 13, you will see our five pillars of a full service digital banking platform.
Five pillars are banking lending advice.
Resting in insurance.
And crypto.
Our goal is to continue to expand on our offering and incorporate each one of these pillars over the next six to 18 months into our white label offering providing opportunity for cross sell and to drive even greater customer engagement.
In Q2, we did sign a partnership as I mentioned with array, which I've already talked about which I believe is well into the advice bucket will be working to integrate this product into a white label offering over the coming months.
I would now like to briefly pass it on to Bob to provide some thoughts on our valuation relative to peers.
Thanks Kelvin.
I would start with I mentioned to everyone that we have added to our financial platform to Eurobank comparable group, along with Moneyline and two five.
The increasing amount of activity in this space from the valuation in some of our peers. We think is a good thing.
This company is trade added easy to 2021 revenue multiple 18 times and JV in 2021, EBITDA multiple of 32 times, a very rich very strong multiples.
Other comp groups, including bank tax payment Tech BBB card issuers those groups all trade at five to seven times revenue compared to our one three times multiple and 17 to 23 times EBITDA versus our six times multiple.
So they're on track excuse me and we're also valued very attractively on until the account basis compared to several of the profit comps that are out there our enterprise value is only $50 per account versus $302000 for most of our peers.
Overall no matter, how you look at it we think that our market cap or stock price is very attractively valued.
Let me wrap up with the investment highlights.
Sounds good.
On slide 15, I would like to end by summarizing our key investment highlights.
We have an established customer base of over 2 million accounts.
We shared record Q2, and first half of the year results with EBITDA up 11 times year over year revenue up 46% year over year.
We demonstrated deep customer engagement with an annualized revenue per account up.
Up 41% year over year, driven by higher average balances and spend.
We also showed solid account growth and open approximately 200000, new accounts in the first half of this year.
We have strong existing partnerships with approximately 735 University partners T mobile and Google.
We have developed a proprietary digital banking platform, which we are ready to rollout to white label and workplace banking partners in the pipeline.
And lastly, we have a very attractive valuation, which today is at a deep discount relative to both private and public peers.
Once again I want to thank our investors and shareholders for their continued support and also all the BMT team members, who make all of this possible.
Operator, we would now like to open the line for questions. Thank you.
If you would like to ask a question over the phone. Please press star one on your telephone keypad to ask a question via the web and to your question via the chat box.
For just a moment to compile the Q&A roster.
We do have a question over the phone and your first question is from the line of Mike Grondahl with Northland Securities.
Okay.
Hi, Mike Hey, Thank you Hey, guys.
Congrats on the quarter.
First question is just in the new business area.
In the last quarter.
Sort of incrementally new there.
Any update just on the marketing efforts that are going on.
Okay.
Sure so.
The new business is really made up of T mobile as well as.
Other white labels and workplace.
T mobile continues to be strong.
A component of that new business opportunity.
And what I can say about that is that T. Mobile continues to be very strong opportunity is the biggest contributor to the new business segment as I shared the numbers really speak for themselves.
Cannot share out more with really with respect to our partner.
But we continue to distribute the product into new T mobile channels and enhance the product to drive further acquisition and engagement.
And in my opinion, we really are at the beginning stages of what the potential for this partnership could be.
Look forward to sharing more as we continue to build out the partnership.
Got it got it.
Switching over to higher education in the college campuses.
Any update on sort of the Google.
Cole brand timing, what's the latest thinking there.
Yeah sure.
So what I can say with full confidence is that Google and BMT Act have unwavering commitment.
To our partnership and two the product that we want to bring to market.
We still believe strongly that our bank mobile Googolplex account can lead to significantly more students choosing to bank with us.
And what I think that we said last time and we continue to stand behind is that in terms of timing and continue to work with Google to bring digital first bank accounts to the market if not in late 2021 than in 2022, and we remain consistent with that timeline.
Got it got it and how are you feeling about the back to school season.
Colleges are going to ramp up here any day.
Feel pretty good as everything sort of set there.
Okay.
Yeah, Yeah. So we feel good about it we always are really benefit from a fall peak season. So as students come back to school August September October and then again in that January February timeframe. So we love that time of the year I do want to emphasize that even is.
<unk>.
Students are not coming to campus because of anything that developed with the delta variant et cetera that has very minimal.
No effect on our business because students continue to get refunds, whether or not they are on campus or not and so we're feeling excited about the fall peak we have are.
Head of marketing really working on new initiatives around both on campus marketing digital marketing and that.
We are excited to be experimenting with and we look forward to sharing a status update in the next quarter and how things are going.
Oh.
Great.
Maybe lastly, just the product journey.
One addition, do you think is mix there I know you have three things youre kind of working on.
But any insight into sort of.
Which one do you think is going to be next.
No for US Mike we're constantly thinking about making sure that we're investing in a product that really solve the pain point for our consumers.
And that provides as much value to them and also hopefully creates revenue generating opportunities for us as well I would say that all five pillars. I mentioned are very important to the customer experience I feel like we've done a good job of penetrating the banking bucket and the.
Lending bucket.
But the lending bucket, even has more opportunities in terms of proactive marketing to our non enrolled students once they graduate or become non involved and so we look forward to sharing more in the coming quarters and how that strategy is panning out painting in terms of that.
Adding more products and services, we focus this last quarter on the advice category.
I think the partnership with array is an exciting one, especially given how important it is for <unk>.
Jude and demographic as well as.
Americans in general to understand their credit to make better decisions and so we've really focused on the advice category for the last quarter, but we'll continue to look into investing insurance in crypto as well into the future.
Okay. Thank you.
Again to ask a question over the phone please press star one you're.
Your next question is from the line of Michael Diana with Maxim Group.
Okay. Thank you.
Good morning.
Oh.
On page seven of the most interesting in your AR.
In your presentation here, both the growth numbers in the absolute numbers, obviously the growth numbers are very big brokers.
Focus more on the absolute numbers and maybe where they could go for for example revenue per account also one that jumps out.
I think in the release you said that.
Your active new business accounts.
Annual spend was $17000, which is way way way below where you are now so could you just comment on where these.
The numbers might go.
Bob do you want to take that one.
Let me start with that so.
So Mike you're right. We did talk in the press release about highly active users.
White label business, which are active users that not only have to work deposits at all.
We also have got at least five debit transactions in a month. So it's a great demographic. We were really pleased to reported that subset has grown to 16% of the lightweight accounts, which is up from 12% a year ago.
And at the levels of spend that we're seeing there.
As far as door, it's what are kind of industry averages a little hard to get that data. We've looked at some industry studies. It looks like maybe an average debit spend across America runs about $6500 a year.
We're multiples of that in a highly active segment.
Pointed out here on slide seven this is actually a quarterly.
Spend number.
You'll spend number and changes you have to keep in mind, there is a little bit of apples and oranges. There. So in the seating business our quarterly spend at 1977 would annualize out at close to $8000. So we actually think that's a really good number too.
Yes.
Performance and you see here and we're very pleased with.
Okay.
Any comment on revenue per account.
So again the revenue per account at $45 is a quarterly number. So if you were to annualize that out you'd be at about $180 per account.
The numbers that we have seen from a lot of our peers out there that actually it was a really attractive level of revenue per account.
What I would throw out there AD as hey, this is based on our business today and as we continue to augment.
And add products and services, we definitely see that there is upside there.
Alright.
The earlier.
Metrics that are very interested in the quarter was your operating leverage.
Could you just comment on how.
You're able to hold the expenses well below the revenue the expense growth well below the revenue growth.
Yes, Mike so.
For better or worse, there are a lot of fixed costs in our business and we haven't invested a lot in the platform and the technology and as we now are able to grow the top line. It doesn't require the same level of investment on the bottom line.
Do have some growth in expenses, we do continue to invest in the business. We do continue to make some hires but we are very pleased that the.
The dollar revenue growth does not require a dollar of expense growth or even an exact percent increase interest anymore expenses, either we do have positive operating leverage and that's one of the strengths of our business.
Okay, great. Thank you.
Thanks, Mike.
We do have a follow up from the line of Mike Grondahl with Northland Securities.
Hey, Michael.
In terms of the second quarter.
I think back in one <unk>, you called out maybe had $1 million to $2 million benefit.
From just stimulus dollars running through the model.
Guests and to to sort of what the revenue benefit was.
Yes, so I'll take that one thanks, Mike look we have been a beneficiary of a significant amount of stimulus into our accounts.
We think that really is a good thing it shows that we've got a primary account usage, where the account on file with the IRS for a lot of our account holders that they've gotten federal refunds money has come into our accounts, but we also think this is part of the benefit we've seen shooting business I'd say with the cares Act there were dispersed.
So were made at the colleges and universities, we actually have been able to.
Secure a couple of new relationships to help Joseph Federal cares disbursement business between schools normally handle disbursements for is muted. So there have been opportunities to help our partners with stimulus going on.
We did as you say quantify the stimulus impact in the first quarter. We said it probably was about $1 million, we didn't give a range a little bit higher but as we fine tune I do think it's at the lower end of the range. We gave before so maybe a $1 million.
This quarter, we have seen a much smaller impact of stimulus and we had over $180 million in deposits came in in the first quarter of stimulus funds were positive and the number this quarter is less than a third of that.
We estimate because there is some tail on the timing of stimulus of the stimulus impact this quarter has been.
<unk> of what it was in the first quarter.
And we continue to it.
Yes sure.
We've got the child tax credits are still a couple of pieces and you assume they're trickle out, but I do think that at this point as we look forward, we think that the lion's share of the lithium Cumulus is behind us.
Got it great.
So have you guys.
Sort of reiterated guidance of adjusted EBITDA of $20 million to $22 million.
Europe 13 eight.
Through six months Youre basically two thirds of the way there with half of the year to go.
Are you guys just being conservative or is there some investment in the back half of the year. How do you want people to think about that.
Yes, I'll start.
They're going to add to that.
In my opening remarks, we have a seasonal business, especially in the higher educational vertical.
And there are some uncertainties around timing, it's more about it it is not if but when.
For example, the exact timing around the Google watch the exact timing around when we bring on a new white label partner and that is why we have a strategy of really managing our expenses based on timing of our revenue growth. If the revenue growth is achieved quicker we may be able to beat that but for now we're staying with the EBITDA guidance, we had given.
Earlier.
We are not managing this business really quarter to quarter, but for the long run and the fundamentals of our business remains strong and that's what we're focused on undoing and communicating.
Yes.
Great.
And I would just say that we're not changing the guidance. So we feel really confident about it.
We've got a good story.
Earlier Loveline, you kind of gave us an update on some of the opportunities out there.
For new wins and whatnot.
Do you still feel confident you can pick up.
You've talked in the past about one new win a year one big win a year.
Your confidence level in announcing that this year.
Yeah, I think that we always aspire to have.
Partner announced a year and we're still working hard towards that.
As I mentioned these deals because there are meaningful in nature. We're also different from other banking as a service providers because we provide very customized integrated experience in that high touch experience is valued by the right partners.
But it also takes a longer sales cycle.
So what I'd say is that we have a rich pipeline of exciting opportunities that we are working through and we remain hopeful that we can announce something this year.
Got it and then maybe just lastly, I think I asked you this last quarter or two but it's a question I get a fair bit.
Is it just the three.
Deposit fees.
Customers Bank is paying you.
That's good for about another year and a half have you begun to kind of explore or talk with new providers, who would step into that role and in sort of.
How and where is that profit.
Yes sure.
Definitely we are we're talking to other opportunities I had mentioned it last time, there's a lot of interested parties and so we're in a lot of very productive conversations with various bank partner opportunities.
And as you mentioned, Mike we do currently have an agreement with our existing bank partner that runs to the end of 2022.
I also wanted to mention again and remind the investor community a little bit about this deposit servicing fee and then it's really made up of two components.
And the larger proportion of its fee is really to cover the cost of sourcing and servicing. These deposits. We have these accounts sitting on our core that we run we have our own banking operation team management and compliance teams broad team, we went customer care data analytics and provide access to <unk>.
<unk> ATM network et cetera, It goes on and on and that is what we're getting paid for it.
And the other portion of the feed smaller portion is there a revenue share on the net interest income from the bank.
Right now this new structure more at the SEC.
Fixed amount, but going forward, we are likely to structure. This in a more of a variable way. So as rates rise, we will benefit and if the rates begin to rise and you can get close to where they were in 2019, we are very likely to get a similar deposit servicing fees, we are getting today.
If not then the Rev share we are getting from the net interest income will come down for the time being until rates rise again.
That being said I want to reiterate that we have the agreement in place today with our current bank partner for the time being and existing deposit servicing fees will stay in place and we are hopeful that over the next couple of quarters, we will have one or more new bank partners and our objective really remains to negotiate the best possible deal and.
We'll keep you guys posted.
Fair enough. Thank you.
Thank you.
There are no further questions over the phones.
We do have.
Several questions come in across the web kind of snap deal a rebound and we can answer some of those.
We have two that are sort of around seasonality.
Let me take this is the first one is asking why it is that in the quarter with our revenues were down sequentially did we see expenses that were not down sequentially.
I think the way I would answer that is that our revenues are certainly more seasonal than the expenses are as I mentioned earlier, we are in a business that has a fair amount of fixed cost most of our costs are people and that cost doesn't go away just because you've got a seasonally slower revenue line in the quarter. So the seasonality in our business.
It really is much more topline and bottom line.
And the growth in expenses I think we're very proud of overall the level of expense growth year over year I think it's been relatively modest, but we do continue to invest and grow the business and that is going to result in some expense growth, which is why you see that expense increase even as you see just quarter over quarter a slight decline.
In revenue.
The second question that we have around revenues and seasonality.
On your last call you said that you expected seasonality to even out over time.
What is the current seasonality was the weakest quarter can you share some shed some light on how you think about this easy now.
I guess I wouldn't equate to even out I would say that the impact of seasonality will diminish over time as the student business.
Rose at a slower pace than otherwise label business and work those business those businesses are not season, all the way to achieving businesses and so if you look back two years ago. When Europe student we had a very seasonal business. You look two years from now and student is maybe half or less of what we do.
Seasonality is dampened by the business that's not as soon as.
So it will diminish, but I guess I wouldn't say it will fully even though.
To answer the question of a balanced seasonality with the first quarter is certainly our strongest quarter in the student business.
He is the one we've got that spring seasonal sort of peak with students coming to school, but then as you go through the second quarter, you see a pretty material decline in the second quarter does tend to be I guess.
Our slowest quarter seasonally and then as we get into the fall peak around the student calendar. It actually is spread across it straddles the third and fourth quarters, because we really are starting to see money coming into the accounts.
As we go into the end of the third quarter. We ended the quarter very strong we start the fourth quarter strong and then it tapers as we get into year end. So so you sort of got that fall seasonal peak is straddled across the third and fourth quarters.
This will sort of diminish over time as we have growth in the other businesses and I would encourage people to look at the trends in deposits and spend that we can break out for the students versus non suiting business to get some better sense of how the seasonality impacts.
Another question that we have in lovely and I'll, let you take this one.
It pertains crypto clipped and of course it is part of the pillars that we have outlined and the question is around sort of how are we thinking about the opportunity for quick go what do we want to do how is this going to impact the student business.
Our goal of attracting and retaining.
Don't.
Sure I'd be happy to take that we've definitely seen that then.
<unk> is it.
It's growing more and more consumers are getting comfortable with it we're seeing competitors square venmo et cetera offer.
<unk> offerings that seem to be the.
When used by customers and so we definitely want to make sure that our products and offerings really reflect what consumers are looking for and what they are engaging with and so that's our number one priority.
In terms of.
What that offering might look like we will share more once we're ready to announce.
That as I said before any partnership that we create we really look for it so I'll be in a consumer pain point and hopefully also a revenue generating opportunity.
For us.
In in that crypto offering we want to make sure as well that there's a lot of focus on making sure that where there's regulatory burden of robustness and.
Compliance focus offering.
So we will make sure that before me.
Integrate any quick they're offering but we are abiding by respecting that framework as well, which is equally as important is looking out for what the customer.
Needs and pain points out.
Thanks Helane.
I think we've got time for one more question. So I'll sit here and I'll start and then I'll, let loveline chimed in but there's a question about the pace of partnerships with schools, the sort of pace of adding schools and of course I know we did include in the press release today that we had added in the first half of this year.
Schools over 47000, new students.
I will say that I think this is one of the places where covid has had some impact on our business and that many of our college and University partners are distracted they may still be remote colleges and session, but I think they are dealing with a lot of challenges in running their business day to day and I think that that has certainly given some challenge ourselves.
For us.
Just wanted to pull through that they normally would expect although they continue to have really good conversations we've got a really big pipeline with a lot of schools and enrolled students that we do expect to pull through.
So I guess.
Absolutely as I think you would want to add on those lines.
No Bob I think that that makes sense and we're always excited about bringing new products and services to the market for our college and University partners.
To create more sticky relationships more valuable relationships and so the relief and rollout of vendor pay solution earlier this year as well as our announcement with touch net to really offer our schools are more holistic offering around IV solutions and a more holistic refund disbursed.
<unk> business are all stuff that we're working on to make sure that we had strong sales pipeline and product offerings of our college and University clients, which is important because it gives us more and more access to students across the country.
So with that I want to thank everyone. So much for their their questions and so grateful for your continued interest and support of BN <unk> and we look forward to connecting with you next quarter.
Hope you have a great day, thank you very much.
Thank you everyone.
This concludes the <unk> technology second quarter 2021 earnings Conference call. Thank you for your participation you may now disconnect.
Right.
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