BankMobile, a division of Customers Bank and America’s first zero-fee, mobile, tablet and online bank, is taking the student community by storm with its zero-fee model that has taken over Higher One’s high-fee prototype. The new model app will help students save nearly $70 million a year.
BankMobile already has about 55,000 zero-fee ATMs and it offers zero overdraft fees among other benefits to the millennial and Gen X market. With no physical branches, this digital entity mostly caters to 68-million Americans who are categorized as “under-banked” or “un-banked.”
“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, as he further explained the bank’s 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 continued.
The BankMobile app brings much more to the table with features such as personal banker, podcasts with successful millennials, financial consultations etc. In under a year of operations, the app has clocked 100,000 customers and is on track to go past 2 million accounts 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.