Green Dot is teaming up with a fintech firm to court millennials, part of its growing list of partnerships that are contributing to its turnaround.
Under an agreement announced Wednesday, Green Dot will offer white-label mobile banking products to Stash, an upstart microinvesting firm. Products will include checking accounts without overdrafts, debit cards and personalized financial advice.
Stash, which is based in New York, has roughly 2 million customers. The company mostly targets young customers, allowing them to open investment accounts with as little as $5.
“The partnership is an example of the versatility of Green Dot’s ‘Banking as a Service’ platform, which will enable Stash to turn their financial services ideas into real solutions to serve their customers,” Brett Narlinger, chief revenue officer at the Pasadena, Calif.based Green Dot, said in a press release.
The announcement shows how Green Dot is focusing on technology partnerships to boost profits.
Green Dot recently began providing branded, prepaid debit cards to TurboTax customers through an arrangement with Intuit. It also offers a mobile checking account called GoBank in partnership with Uber and other companies.
The partnerships provided a much-needed boost to Green Dot’s operating revenue in the fourth quarter; it rose 31% from a year earlier to $213 million. Moreover, the company swung from a loss in the fourth quarter of 2016 to a $12.2 million profit in the fourth quarter of 2017; full-year 2017 profits more than doubled year over year to $85.9 million.
Under its latest agreement, Green Dot will help the Stash target millennials who either do not have a bank account, or who lack a primary relationship with a traditional, retail bank.
“Stash is committed to being a true partner and source of support for our clients, and for those who have systemically been left behind,” Brandon Krieg, CEO and founder of Stash, said in the release.