America’s first absolutely no-fee, mobile, tablet and online bank, BankMobile, a $7 billion asset and a division of Customers Bank, known for its collegiate concerns,will be helping students save $70 million a year after acquiring Higher One’s student banking business and replacing its high-fee model.
BankMobie already offers 55,000 surcharge-free ATMs, operates without overdraft fees and offers lucrative benefits to millennials and Gen X customers.
“During our due diligence at Higher One, we identified the regulatory and compliance risks of the high-fee based model that the company was using to make money from its student loan disbursement business,” stated Jay Sidhu, Chairman and CEO of BankMobile and Customers Bank, explaining how Higher One’s business was risky. “We are a full service bank and are offering these students checking, savings and loan products and making them affordable and accessible in alignment with our mission. Our goal is to provide these students with a ‘wow’ experience and make them customers for life due to their positive experience with us. Our banking model will put approximately $70 million more in the pockets of students across America who are working hard to study in the hope of obtaining high paying jobs.”
“These students want to buy cars, plan for growing their families, and quickly pay off their student loans. The loans are meant to pay for tuition and textbooks, not high bank fees. Every time banks and credit unions charge overdraft fees, they are charging approximately 17,000% interest on the money they are ‘lending,’ which amounts to over $30 billion each year. This is outrageous. BankMobile will never charge an overdraft fee. Also, we will provide our student customers with access to over 55,000 free ATMs across the country. This is a commitment from BankMobile”, Sidhu continued.
Along with making banking more affordable and accessible for students, BankMobile will aid students in being their own financial experts through blogs, financial management tools, financial consultations and podcasts with millennials who are already successful, all in just one app.
“As a fellow millennial myself, it is my goal to change the -2% savings rate of the millennial generation and make sure they are on solid financial footing so they have the freedom to pursue their dreams,” stated LuvleenSidhu, Chief Strategy & Marketing Officer of BankMobile, reiterating the bank’s support for millennials.
Customers Bank is a subsidiary of Customers Bancorp, Inc., a bank holding company in Wyomissing, Pennsylvania and has an illustrious board of directors that includes the founder of London-based C&C Alpha Group, Bhanu Choudhrie.