This summer, a 23-year old teaching assistant in Kansas City, Kan ‘Turiya Goetze’ found herself looking for a new bank. At a very large ad big national bank, her student checking account had expired and she was concerned about paying huge fees on a traditional account. After that, she heard about GoBank, which is one of the new breed of mobile banking services mainly aim at fee-averse customers, especially 20-something used to do doing everything on their smart-phones.
Now she is using it as her sole bank. However, Turiya Goetze is one of the biggest fans of GoBank feature as she is able to check her balance quickly on her phone without logging into her account. The best part of it is that she doesn’t have to pay any monthly fees as GoBank allows users to select their fees from zero to $9 a month and currently she choose to pay nothing. But now she has decided to start paying $1 a month and right now she is using GoBank for a while and likes it.
Apart from this, she has estimated that she would have to pay about $12 a month with a traditional account. There are lots of old-fashioned banks that provide mobile banking applications and branchless banks are not new. When it comes to talk about the upstarts, it comes with Simple and Moven especially appealing to younger customers and others on stir budget as they avoid to pay most of the fees like dreaded overdraft fees and have no minimum balance requirements.
Each one varies in its offerings, but all aim to simplify payments and help-out users to track their spending. When customers are on the high, they are meant to be use instead of sitting down at a computer.
Many new alternatives are working with traditional banks to hold deposits in order to insured the money in your account. GoBank is the mobile banking arm of the Green Dot Corporation that markets reloadable prepaid debit cards and owns Green Dot Bank that holds the money deposited through GoBank.
When it comes to talk about the Simple and Moven, they are in effect banking services instead of banks, but they are working with traditional banks in order to handle the actual banking functions behind their mobile applications.
Simple’s deposits are held at Bancorp Bank that is currently based in Delaware, while Moven are held at CBW Bank that is based in Kansas. But lots of customers prefer to use the service through mobile applications as well as websites. Today, we can say that new mobile banks are gaining huge popularity in the market.
In July 2012, Simple became public for people and now has approximately 80000 customers, said a spokeswoman, Krista Berlincourt. Right now, Simple needs users to mail a request for an invitation to join, before letting them to register. The loom acts as a fraud restriction and now it allows the company ramp up its system to meet demand, she also added.
While Moven is still in its testing stage and it also asks its customers to submit an invitation, said Alex Sion, a president of Moven. He also added that the service has couple of thousand customers. The major benefit of it is that it allows users the option to make payments openly from their phones, by tapping the phone on a payment terminal, he said.
Lots of new mobile models are developing, but they are showing assurance by focusing on what customers are looking for and what they want to do instead of banking terms that most millennials don’t care about, said Jennifer Tescher, chief executive of the Center for Financial Services Innovation.
For example, Simple’s users can easily see their safe to spend balance that takes into account pending bills. Today’s young people like to have instant access to check their balances, she said. She also said that they care about having a terrific user experience, which is extremely easy-to-use and works in real time.
The founder of the Netbanker blog, Jim Bruene said the new mobile banks has “hip” aura which plea to young people. For example, GoBank is providing a budgeting tool which is known as Fortune Teller. Users can easily ask whether a purchase for a particular amount is good or not, and the system will respond spending usually with a gently sarcastic remark