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Products for Unhappily Banked Can Win Over Underbanked, Too


(4) Comments



Comments (4)
Marc I wasn't referencing the article at all in that regard just mentioning what Green Dot said.

In actuality these are prepaid accounts. 5 or 6 days to deposit a check remotely? How long does Check21 allow for a check deposit? An hour? Why would anyone wait 5 or 6 days (Bluebird and GoBank) to cash their paycheck? Because its cool to do it through a phone? Waiting 6 days is not cool.

It's the companies that don't want to be seen as 'prepaid'. Simple uses Bancorp-Delaware & TxVia - a prepaid processor and the account can't over draft. Simple though uses a front end to filter out what are considered bad risks so just like a regular checking account if you are in Chex - no approval. However just as with prepaid the Simple bank card cannot be used to rent cars.

GoBank? Prepaid.

Chase does put themselves out there with allowing a $200 credit on a check deposit immediately but they run Chex for Liquid also so its not prepaid in that regard.

The companies are confused about their identity and about their product offerings.
Posted by Jim Jackson | Friday, February 15 2013 at 4:53PM ET
In many cases, underbanked consumers would like a financial relationship, but the products offered don't meet their needs. Immediate access to funds, which you mentioned, is a driving force for many consumers. A Regions Bank study found that nearly a third of their customers were using some alternative products and that accessibility was an important driver of that use. Their response was to deliver products with immediate cash access for under banked consumers.

Financial Institutions have a lot to gain by engaging consumers with more relevant products. The underbanked segment represent a large market, looking for banks capable of meeting their needs. We're seeing the leaders begin to step up to the challenge.
Posted by Eric Lindeen | Wednesday, February 13 2013 at 10:22AM ET
Jim, Thank you for commenting. The author wrote that the products discussed "combine elements of checking and savings accounts and prepaid debit cards." She wasn't pigeonholing it as a prepaid product -- although technically speaking, even checking accounts are "prepaid."
Posted by Marc Hochstein, Editor in Chief, American Banker | Monday, February 04 2013 at 9:38AM ET
Green Dot has stated that GoBank is not a prepaid product.
Posted by Jim Jackson | Friday, February 01 2013 at 3:08PM ET
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