BankMobile, a division of Customers Bank and America’s first absolutely no-fee, mobile, tablet and online bank, which is fondly known as ‘the Uber of banking,’ is set to get more fans.
After acquiring Higher One’s student banking business, it has replaced the former high-fee model to be more student-friendly and help them save up to $70 million a year. BankMobile’s list of student benefits includes 55,000 surcharge-free ATMs, zero overdraft fees among others which are perfect for millennials and Gen X customers.
With zero physical branches, this digital entity aims to target 68-million Americans who are under the “under-banked” or “un-banked” category.
“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, refuting Higher One’s high fee model. “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 added.
The BankMobile also gives helpful services like personal banker, podcasts with successful millennials, financial assistance etc., the reason why it is already serving 100,000 customers and is set to see that number rise to 2 million in July.
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.