Safeguarding Student Enrollment and Upholding Higher Education Institution Integrity with BMTX Identity Verification™ (IDV)
RADNOR, PA / ACCESSWIRE / October 16, 2024 / BM Technologies, Inc. (NYSE American:BMTX) is excited to announce the launch of its innovative student identity verification service, BMTX Identity Verification™ (IDV), designed to combat the growing issue of student enrollment fraud in higher education institutions. With the cost of acquiring new undergraduate students increasing by up to 32% from 2020 to 2022 alone,1 the need for robust enrollment fraud prevention measures has never been more critical.
Enrollment fraud is a significant issue nationwide, particularly for community colleges. These institutions are more vulnerable due to their lower profile and less stringent entry requirements. They often have open enrollment and zero application fees, making them prime targets for bad actors. Financial losses from "ghost student" applications can be substantial, with institutions paying out fraudulent financial aid and allocating resources to non-existent students. This affects the institution's budget and takes away opportunities from legitimate students. Additionally, the presence of ghost students can lead to inflated enrollment numbers, prompting institutions to expand course offerings unnecessarily and misallocate resources. For example, California community colleges have faced significant financial challenges due to enrollment fraud; similar issues are seen at Texas community colleges.
BMTX IDV is engineered to assist universities in mitigating fraud vulnerabilities during the student enrollment process. It leverages robust AI and machine learning tools, empowering universities to maintain their risk level preferences with data-driven insights and significantly enhance their fraud detection capabilities, all while improving customer service and employee productivity.
BMTX IDV:
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Offers an 85% reduction in fraud rate compared to traditional services and provides up to a 95% reduction in third-party and synthetic identity fraud.
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Achieves up to a 13x reduction in false positives.
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Saves schools an average of 15-20 hours per week of manual, peak-season work.
Higher education institutions must ensure the safety and security of students throughout their academic journey. As they navigate increasingly sophisticated threats like identity fraud during enrollment, BMTX is committed to providing robust solutions that protect students and uphold the integrity of higher education institutions. With nearly 25 years of experience in higher education, BMTX is at the forefront of helping schools combat student enrollment fraud.
"We are proud to introduce BMTX Identity Verification (IDV) to both our existing higher education school partners, as well as the colleges and universities we don't currently partner with," said Jamie Donahue, President and CTO of BM Technologies (BMTX). "BMTX IDV leverages cutting-edge technology to combat student enrollment fraud, providing institutions with a secure and efficient solution. By incorporating advanced verification tools, we're addressing the evolving challenges that all colleges face today. We're confident that IDV will set a new standard for identity verification, ensuring a safer and more streamlined process for both students and institutions."
In the first half of 2024, BMTX launched its first school on the new student identity verification service, BMTX IDV. Year to date, BMTX has 17 signed IDV contracts with various schools, including the San Mateo Community College District and the Louisiana Community and Technical College system.BMTX is also one of a select group of vendors chosen to service the Wisconsin Technical College System through its recent RFP process. The agreement is being finalized to officially secure BMTX's position as an approved vendor.
Nathan Hall, Dean of Enrollment Services at Louisiana Delta Community College, noted in The Chronicle of Higher Education, "At Louisiana Delta, for example, which began using BMTX's Identity Verification on August 30, the tool has helped prevent about 500 fake applications from getting through." He added that this was outside of the season when they'd get the most applications, too.
Key Features and Benefits of BMTX Identity Verification:
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Advanced AI and Machine Learning Tools: Utilizes cutting-edge technology to detect and prevent fraudulent activities during enrollment.
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Streamlined Enrollment Processes for Students and Administrators: Enhances the enrollment experience for students with efficient and secure verification processes. College and university administrators can save time by reducing the hours spent on manual reviews.
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Outperforms Competitors: Across all age ranges, especially in the youngest demographics.
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Fast Implementation: A school can get up and running within 2-4 weeks with the BMTX IDV service.
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Free Proof of Concept: A frictionless assessment is available to help prospective clients understand how the BMTX IDV service will work for them.
1 Pieroni, Alejandra Sosa "3 Key Takeaways from the Cost of Recruiting an Undergraduate Student Report" Education Insights Blog
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.
SOURCE: BM Technologies, Inc.
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