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Banking With Zombies: How Card.com Caters to Customers
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Re: Fair Banking
  • 7/23/2014 3:45:55 PM
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@BenKatz -- I'm sure there are quite a few adults who could use some training wheels for responsible money management, too! Prepaid debit cards could prove useful in a financial reset.

Re: Fair Banking
  • 7/22/2014 5:03:28 PM
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@Beth, consider prepaid debit cards to be the training wheels to responsible money management for your kids.  Once they understand budgeting and spending (and quickly how important it is to be careful of their spending!), they will be in a better position to use credit and lending services.  Mobile banking is the bottom line to future bank services and onboarding them sooner than later is highly recommended.  

Re: Fair Banking
  • 7/22/2014 4:48:05 PM
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Hi Ben, thanks for joining in the discussion here. So here's a theoretical I've been pondering. I have kids in college. They ditch their checking accounts/debit cards in favor of a snazzy-looking, mobility-enabled, no fee Card.com card. They love, and use it all throughout college and into their young professional lives. Do you see them ultimately needing to supplement, or complement, this type of banking with more traditional banking -- ie, a savings account that gives them a credit base... for when they want to apply for a mortgage, say? Or do envision a different banking future for them?

 

Fair Banking
  • 7/22/2014 4:35:54 PM
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CARD.COM believes prepaid debit cards offer a convenient and minimal risk banking service that matches the needs of a growing demographic that includes millennials with high expectations for corporate services, students that are budgeting for the first time, those that are furstrated with overdraft fees, and the mobile savvy types that want to bank on-the-go, just to name a few. In comparison to competitors and traditional banks, CARD.COM offers most of the features of a traditional checking account at highly competitive fees. Benefits of CARD.COM include the elimination of a credit check, overdraft fees, late fees, inactivity fees, and minimum balance, all of which are key to responsible financial management for all ages, genders and economic classes. @Beth - we'll work on our Chicago-related cards for you!

Re: Nice but not behavior changing
  • 7/22/2014 4:29:35 PM
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Hi Maryam, I think I like the idea of loadable cards, rather than cards with preset values, for that purpose. Although, you can achieve the same goal, I suppose, by having parental access to a student checking account with debit card, which makes it easy to transfer money, or by setting up a direct deposit into the account. Clearly there's far more flexibility in banking than when we were students! It'll be interesting to see how this plays out with the next generation.

Re: Nice but not behavior changing
  • 7/22/2014 1:14:44 PM
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Beth it can absolutely help those that have challenges with budgeting but it can also help the young like college students or high school students who might need a credit card but whose parents are hesitant to give them one on their account. The preset limits are a great option for them. Many of the large credit card companies are distributing these cards in retail establishments for just this audience they are a big back to school seller!

Re: Nice but not behavior changing
  • 7/18/2014 4:23:16 PM
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@Maryam, I've been thinking that getting one of these cards would be a good way to help with those trying to get better about making and sticking to a budget. For example, they could load the card monthly with the money they designate for discretionary spending -- entertainment, dining out, clothing, etc. -- and once that's gone, it's gone. Of course, they'd have to be disciplined not to pop the card into an ATM and download more money to it! 

Nice but not behavior changing
  • 7/18/2014 3:02:53 PM
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While I do think it's an interesting personalization effort I don't think it would move me to alternative banking. Alternative banking was designed for a segment of the population that cannot or does not want to access traditional banking channels. The personalization is making its way to the gift card market as well, so I think that traditional credit card providers may offer these options in the future.

Re: the unbanked masses
  • 7/18/2014 2:42:51 PM
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@Beth -- I'm not sure how many unbanked-but-mobile clients I had, at Block. I would tend to think there probably weren't that many -- the cash-and-carry types tended to be older, as you might imagine, but most of my younger clients had mobile phones -- they also tended to be more receptive to taking Block's debit card.

(Actually, now that you mention it, the ones who cracked me up were those who DID take the Block debit card for their refund, but then wanted to know the max they could take out at an ATM, and how soon. These people were going to take the debit card, but use it exactly once -- or as few times as possible -- to take out a wad of cash they could carry around!  I used to tell them, "Don't do that -- if your debit card gets lost or stolen, just call us, and we'll send you a new one and you won't lose anything -- but if you get rolled in the parking lot and your cash gets stolen, I can't replace that!"  Most of them were unmoved and still wanted the cash.)

This avoid-the-credit-card-vig idea may be a growing trend, though. I recently got a "SmartPay" card from a convenience-store chain, which gives you a 10c/gallon discount on gas if you charge it with their card, which is not a credit card but allows them to hit your checking account directly. I suppose the usual security issues apply, but I didn't see any obvious reason why it should be any riskier than using a credit or debit card -- and 10c/gallon is 10c/gallon, so why not?

Re: the unbanked masses
  • 7/18/2014 2:27:07 PM
NO RATINGS

"The Great Unbanked" -- I like that expression, @urbie4. And this is an interesting use case, one that I'd not thought of myself. Based on your experience would this clientele have the smartphone for the mobility end of this solution?

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