Walmart Rolls Out Low-Cost Checking Accounts For the "Unbanked"
By Christine Kern, contributing writer
Will Walmart’s Newest Feature Boost Loyalty?
Walmart and Green Dot Corp have unveiled the national rollout of GoBank, a checking account product available exclusively at Walmart, according to a press release. Designed for “on-the-go” customers, the new FDIC-insured checking account includes low fees with qualified direct deposits and a linked MasterCard debit card.
The service is aimed at the low-end of the market, where customers are often referred to as the “un-banked” or “under-banked.” The new checking accounts will be available nationwide by the end of October.
Steve Streit, founder and CEO of Green Dot Corporation and Chairman of Green Dot Bank explained, “Many so-called ‘free’ checking accounts aren’t really free because they have high overdraft fees. In fact, an independent study by Bretton Woods estimates that consumers pay approximately $218-314 per year for a basic checking account.” The GoBank accounts have no overdraft fees, no minimum balance fees, or monthly fees with a qualifying direct deposit of $500 per month, when the bank’s monthly membership charges ($8.95/month) are waived. A “starter kit” is also required to establish a GoBank account, which costs $2.95.
“No other checking account makes it this easy and affordable to manage your everyday finances. GoBank is breaking down the barriers to traditional banking and brings the benefits of a FDIC-insured checking account that’s loaded with features to a large segment of Americans,” Streit asserted.
This is the retailers’ biggest push into finance, according to Daily Finance, and Walmart is proud to partner in this new offering.
“Walmart customers want easier ways to manage their everyday finances and increasingly feel they just aren’t getting value from traditional banking because of high fees,” said Daniel Eckert, senior vice president of services for Walmart U.S in the release.
“Adding the GoBank checking account to our shelves means our customers will have exclusive access to one of the most affordable, inclusive and easy-to-use checking accounts in the industry. GoBank gives our customers yet another option as to how they manage their money. When our customers have options, they win.”
TechCrunch explained that with this venture, Walmart’s is not trying to become a bank itself, but rather function sort of like a branch for GoBank’s customers. With GoBank, users can purchase the starter kit at Walmart Stores and deposit cash into their GoBank accounts at the store. This appears to be a logical addition to Walmart’s other financial services, including prepaid debit and credit cards, check cashing, and money transfers.
Additional features of GoBank include:
One unique feature of GoBank include early paycheck availability, allowing customers to access their payroll direct deposit earlier than normal if employers give GoBank advance notice of deposit. It also includes a “Fortune Teller” feature that provides spending advice based on a budget; Fortuneteller crosschecks the price of an item with the customer’s planned income and expenses and alerts the customer if an item exceeds their budget allocations.