GoBank: An Innovative, No-frills Approach to Mobile Banking

Last fall, Walmart introduced GoBank, a mobile bank account offered 
through Green Dot Bank.  Available in retail stores, this online checking 
app challenges the traditional branch banking model. GoBank makes
 banking as easy as buying gum: irrespective of credit history or prior 
banking experience, consumers can access a penalty free bank account 
at a local Walmart.

At the click of a button, GoBank accounts can be opened on smartphones, 
providing customers the ability to create and access their checking accounts
 anywhere. GoBank is accessible through its innovative technology that 
allows financial transactions to be conducted at home and on the go. 
 Consumers can pay their bills online, send money to people for free, 
and snap a photo to deposit a check.  Additionally, GoBank members 
have access to the network of 42,000 free ATMS (though using non-network
 ATMs will result in a $2.50 fee).

GoBank is a low cost bank account and does not charge punitive fees. Traditionally, if you try to use your debit card to make a purchase in a store or online, but there is not enough money in your bank account, either the transaction will be declined for insufficient funds (which may result in a fee) or you have to pay an overdraft fee, which on average could exceed $30.  GoBank, on the other hand, absorbs that cost and does not charge fees for insufficient funds or overdrafts. Additionally, while traditional checking accounts require that you maintain a minimum balance in your account to avoid monthly fees, GoBank will charge $8.95 only in a month when $500 is not deposited in the account.

According to Steve Streit, founder and CEO of Green Dot, GoBank’s innovation goes beyond just the technology of a mobile account.  This online bank is “breaking down the barriers of traditional banking, providing the benefits of a FDIC-insured checking account” to previously underserved Americans. GoBank target consumers are the roughly 70 million Americans who are unbanked or underbanked, meaning they either do not have a bank account or have an account but also rely on alternative financial services (like check cashing or pay-day lending services).  GoBank also appeals to the unhappily banked, the consumers who have a traditional bank account but are unhappy with the fees or overall customer experience.

GoBank is an easy alternative to traditional checking accounts for many reasons.  According to MoneyRates.com, banking is becoming increasingly expensive.  The average cost of maintenance fees has risen such that it costs the average consumer more than $150 a year to just have an account.  Additionally, Average overdraft fees have risen to an average of $32.48.  The only “fees” GoBank charges are $2.95 for purchasing the pack, and $8.95 for any month in which you do not deposit $500.  The app is also very user friendly, with features such as an easily accessed balance bar and customized push notifications.  Beyond that, the app has a unique feature called “GoBank Fortune Teller.” After inputting payment and deposit reminders, such as rent, cable, or electricity, you can ask this genie whether or not a purchase is within your budget.  Since mobile transactions sync to the app immediately, the Fortune Teller is always up to date with your current balance and budget. Finally, GoBank does not barrage its consumers with confusing terms and conditions, but rather simply lays out all the features, costs, and uses on the website in simple, understandable bullet points.

While GoBank has many appealing features, it still is not for everyone. Consumers who are looking for teller assistance, credit or other broader financial services may prefer the traditional branch banking model.Source:Katherine Shifke, Business Today

-By J5 news Team  

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