BROOKINGS, S.D. -
The prepaid MasterCard product is aimed squarely at the underserved markets that many credit unions are also seeking to reach.
The bank reported the first 61 retail locations are expected to come online in July and it is projecting in excess of 750 partner locations will offer the Revel Card by mid-2007.
Fishback Financial Corp. said its new "Revel Card" MasterCard will have a similar prepaid debit function to other cards, but will also feature a "Revel Advance" and "Revel Save" function where credit union members can establish a small-dollar line of credit with one of the five banks that are owned by parent company Fishback Financial, which is then paid off during a four- to 10-week period. The yet-to-be-released Revel Save card will have an interest bearing savings account function.
How Program Works
Fishback explains the offering this way: "The Revel program is designed as a partnership between Fishback and neighborhood service centers, such as community banks, credit unions, grocery stores, convenience stores, and check cashers. The Revel Card program is designed to be offered through existing delivery channels that are already familiar places to Revel customers. Partner companies can broaden their existing product offering, strengthen customer loyalty, and enjoy a new revenue stream that involves no real upfront investment. In addition, we will encourage our retail partners to reinforce our 'Bank on a Card' concept by cross marketing their own products and services, such as auto loans, credit cards, mortgages, and loyalty programs."
The company did not release details of how revenue would be shared with credit unions or other partners.
Trent Sorbe, president of First Community Financial, Fishback's products subsidiary, said the new cards are designed to help credit union's capture the nation's large unbanked segment and to help cut the payday lending cycle of debt. Sorbe said members using the Revel cards will be able to have their payroll deposited directly on the card, pay their bill or use the card website to transfer money.
"It really is a check-less checking account," he said. "It's the only pre-paid card that has this loan function. It makes it very different from anyone else's."
Sorbe said First Community Financial partners with local financial institutions such as credit unions to offer the new card. Credit unions can offer their members an additional product and also share revenue with First Community. Sorbe said his company is absorbing the startup costs and credit union staff can be gotten up to speed to sell Revel cards after viewing an Internet-based training session.
"All they have to do is be the smiling face behind the counter. I can have you selling cards in 10 days," he said.
Sorbe said a pre-paid card with an advance or savings function will have a greater life span than a set-priced card that might be used and discarded or never reloaded.
Sorbe said the average pre-paid card has a life of four months. The Revel card will help members with their financial stability and generate fee income for the credit union. Plus, when a member really needs help, it's their credit union helping them, something they'll remember down the road, he insists.
'They Remember You'
"When they need a car loan, they remember you. They're going to go back to whoever gave them their card in the first place," he said. "The life of the card is so much longer with the loan function."
Sorbe said the Revel Advance fees are 40 to 60% lower than payday loans and the short payoff term will break the debt spiral facing many low income families.
The program is designed to force members to wait at least one month before borrowing again and also features retrial store loading and overdraft protection.
Sorbe has left the company as of press time.
For info: www.revelcard.com.
