There are no overdraft or account-maintenance fees, nor is a minimum balance required.
Fintechs tend to target younger consumers, who may not have a loyal banking relationship, and other demographics that the companies believe are not well served by traditional banks.įor example, challenger bank First Boulevard is directly targeting Black consumers with an account that will offer 15% cash back on purchases from Black-owned businesses that participate in its rewards network, as well as automated savings via a purchase round-up feature and early payday access. In a December survey from consulting firm McKinsey & Co., 36% of respondents who were thinking about opening a fintech account said that these accounts were easier to use than a traditional bank account.
Consumers are taking notice, especially since COVID-19 made banking at a physical branch more difficult.
