BankMobile Introduces First Fee-Free Branchless Banking

At a time when traditional banks are vying to capture the hearts and money of digital consumers, BankMobile joins the fray as the first mobile-only bank in the U.S. that has absolutely no fees. While not the first branchless bank, BankMobile hopes to profitably build scale with an easy-to-navigate platform and straightforward offer.

By David Gerbino, a digital and database marketer based in the New York metropolitan area

In a bold move by innovator and visionary Jay Sidhu, chief executive of Customers Bancorp, a Pennsylvania-based community bank that has 13 branches, BankMobile joins the ranks of Simple, Moven, GoBank, Amex Serve, etc. Unlike many of it’s competitors, however, BankMobile is an independent operating digital banking division of a real bank. With no fees and no branches, BankMobile hopes to financially empower Millennials, middle class Americans, the underbanked, Gen-X and tech-savvy Baby Boomers.

During the introductory press conference, Sidhu made it clear that he wanted BankMobile to be different from every other bank and credit union. Their ‘Phase 1′ offering includes a totally fee-free checking and savings account (joint accounts are offered as well), a personal line of credit (max value of $5,000), access to 55,000 fee-free ATMs, and a debit card that can be used with Apple Pay. It was stated that BankMobile will be ‘proponents of NFC technology’ and ‘support all innovative technologies including Google Wallet.’

We are here to revolutionize banking … to help those who have often been victimized by the industry through excessive fees and we will always be a bank built by, and for, the people.
— Luvleen Sidhu, BankMobile

With an introductory message to interested consumers to ‘Join the Revolution,’ it is clear that BankMobile wants to differentiate their offering. Luvleen Sidhu, Chief Strategy & Marketing Officer, stated “We are here to revolutionize banking … to help those who have often been victimized by the industry through excessive fees and we will always be a bank built by, and for, the people.”

Part of this ‘revolution’ is to reward customers who set up direct deposit. Any customer who sets up direct deposit of their paycheck will be granted VIP Status. Customers with VIP status get two additional benefits:

1. Free financial advice from a financial advisor
2. Fee-free ATMs nationwide

BankMobile has staked the claim that they are America’s first only no fee mobile bank. Throughout the press conference, CEO Jay Sidhu, a co-founder and former CEO of Sovereign Bank, had some pithy quotes about how some banks make money (“fees are an addiction”) and what some banks consider banking innovation (“dog biscuits and coin counters”).

“Innovation has stalled in the banking industry. While the rest of the world is in the digital age, banking remains stagnant. We are here to change this and bring banking to the 21st century. We will ensure our customers feel involved in the progress of this bank and are offering them a truly enjoyable banking experience – different from anything they have experienced before.” – Jay Sidhu, CEO BankMobile

BankMobile has a clear roadmap to grow their business. Their goals are aggressive. They want 25,000 customers by next year and around 250,000 customers after five years of operation. Based on the information they shared during the press conference, they have an infrastructure and a strategic plan that they believe will allow them to deliver on their lofty goals.

More ...