As part a strategy to widen its market for banking solutions, Green Dot Corp. Wednesday launched GO2bank, a mobile-banking application intended to help the 7.1 million unbanked households in the United States manage their finances.
Green Dot says it is launching the program as a way to eliminate the costly fees many unbanked consumers are charged for financial services, such as check cashing. In 2019, nearly 12% of unbanked consumers used fee-based financial services for such services as check cashing, money orders, and bill payment, according to a 2019 study from the Federal Deposit Insurance Corp.
The new app includes overdraft protection of up to $200, up to 7% cash back rewards at more than 90,000 retail distribution locations, including CVS, Dollar General, Walgreens and Walmart, a 1% annual percentage rate yield on Go2bank savings accounts, and access to a GO2bank credit card with no credit check or annual fee, as well as a debit card.
In addition, Go2bank users can access their account through a network of more than 19,000 no-fee ATMs, and the capability to lock and unlock their account using the mobile app. Go2bank users receiving direct deposit can also access funds up to two days early. Users receiving government benefits can access funds up to four days early.
Green Dot, which serves more than 33 million customers through its retail and direct-to-consumer products, views GO2bank as part of long-term strategy to deliver services that attract new customers and retain their loyalty, a company spokesperson says via email.
“Too many Americans struggle to access their money, are paying too much for financial products, and are negatively impacted by the lack of solutions designed to suit their needs,” Dan Henry, chief executive of Green Dot said in a prepaid statement. “GO2bank is built to be the go-to destination for seamless, affordable, useful banking – combining the security, stability, and experience of an FDIC-insured bank with the innovation and agility of a leading fintech.”
Green Dot is supporting the launch of GO2bank with a national television ad campaign featuring two commercials, as well as a new Web site, digital advertising, social media, and direct mail.