Green Dot Stock jumps on online banking launch
The share price of Green Point (NYSE: GDOT) was up Wednesday morning after the company launched GO2bank, its new mobile bank.
GO2bank seeks to provide easily accessible and inexpensive banking services to people through its mobile app. He hopes to attract customers who don’t use banks because they are too expensive or inaccessible – or people who are underbanked.
“Too many Americans struggle to access their money, pay too much for financial products and are negatively impacted by a lack of solutions designed to meet their needs,” said Dan Henry, CEO of Green Dot. “GO2bank is designed to be the go-to destination for transparent, affordable and useful banking operations, combining the security, stability and experience of an FDIC-insured bank with the innovation and agility of a fintech of foreground.
Green Dot officials point out that 7.1 million US households, or 5.4%, were unbanked in 2019. An additional 12% used more expensive methods such as check registers, money orders, and payment services bills to manage their money.
GO2bank, which is FDIC insured, offers low or no monthly fees, overdraft protection of $ 200, early access to paychecks, cash back, higher interest rates on bank accounts. savings and access to credit.
Henry said last year “brightened and accelerated” demand for what he called “a better digital bank.”
Green Dot is one of the largest providers of prepaid debit cards, but it is also a chartered bank offering Bank as a Service (BaaS) for Apple, Walmart, Intuit, Uber Technologies, and Amazon, among others.
The market reacted favorably to the launch of GO2bank, with the Green Dot share price rising 7% at the start of the session on Wednesday. Green Dot has carved out a nice niche in prepaid cards and BaaS, but the company has a real opportunity to generate more revenue from this growing mobile banking space.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.