BB&T has introduced a new account type based on a prepaid card:
Earlier this week BB&T introduced a new account that caters to Americans who are unbanked or underbanked. The BB&T MoneyAccount is a prepaid transaction account with many features of a traditional checking account, including a Visa debit card.
BB&T is at least the second bank to introduce a prepaid financial services product that eliminates traditional turndowns and enables the FI to better serve the unbanked/underserved market – a trend that Mercator Advisory Group made in last year’s prepaid forecast which predicted the specific dollar load volume expected from traditional suppliers (Green Dot, Netspend, Account Now, etc.), new entrants (such as Blackhawk and inComm), and financial institutions entering the market with products – just like this one from BB&T.
The fee structure of the product clearly leverages BB&T’s extensive ATM network:
The MoneyAccount has a monthly fee of $10 but it can be reduced to $5 on the months that you deposit $1,000 or more.
The BB&T MoneyAccount offers many features of a regular checking account including:
* Free Visa debit card for all purchases where it is accepted
* Free ATM cash withdrawals/inquiries at BB&T ATMs
* Free direct deposit
* Free online and mobile banking
* Free online bill pay
* Protection against unauthorized purchases
This new product from BB&T establishes a benchmark that other financial institutions will likely evaluate as they consider their own entry into this growing market.