Business

JPMorgan Chase offers payday early deposits to Security Bank customers


A sign outside a Chase bank branch in San Francisco, California, on Monday, July 12, 2021.

David Paul Morris | Bloomberg | beautiful pictures

JPMorgan Chase is giving some customers early access to their direct deposit, a feature popularized by fintech rivals, as it hopes to lure users into non-overdraft checking accounts.

The bank is enabling the feature – which speeds up payments including payroll, tax refunds, pensions and government benefits by up to two days – for bank customers Safe Bank products starting this week, follow Ryan MacDonaldhead of growth financial products for Chase.

That usually means getting paid on Wednesdays, not Fridays, he said.

“Those days are often the difference between making money from the family or not paying the bills on time and being charged late,” MacDonald said in an interview.

JPMorgan, the largest US bank by assets, is taking this step as the industry faces increased pressure from regulators and legislators over overdrafts and other fees. While smaller competitors include Capitalize one Having said that they are reducing overdraft fees, the CEOs of the three largest US institutions have repeatedly refused call to end the charges completely.

Instead, banks have focused on existing products that protect users from overdraft fees, while still providing most of the functionality of a full service account.

For JPMorgan, that product is Secure Bank, which has no minimum balance requirements and costs $4.95 a month. The service has about 1.4 million users, most of whom have direct deposit and will automatically start receiving payments soon, MacDonald said.

The bank, which serves more than 66 million households in the US, could be a “fast follower” to fintech rivals as they create must-have features, MacDonald said. Start-ups include Chime and Current popularized direct deposit early because they have attracted millions of cost conscious users.

“Fintechs are doing a great job of getting into the space and trying to disrupt by providing services,” MacDonald said. “Customers don’t even think about accessing early payments before some of these players come in. When we did our assessment, we thought there was a real need for certain customers to have a thing. this.”

The bank is working on introducing other solutions to this group, including small loans or installment products, to help users deal with their financial needs during an emergency, he said.

news7g

News7g: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button