BankMobile, America’s first no-fee mobile, tablet and online bank, and a division of Customers Bank, will acquire Higher One’s Student Banking Business, and aims to develop a new banking model that will help students save $70 million a year by eliminating the high-fee existing model.
With a mission to extend its model of affordable banking to millennials, the bank already provides services free of any overdraft charges, along with 55,000 surcharge free ATMs and other lucrative offers.
"During our due diligence at Higher One, we identified the regulatory and compliance risks of the high-fee based model that the company was using to make money from its student loan disbursement business," stated Jay Sidhu, Chairman and CEO of BankMobile and Customers Bank, explaining the bank’s vision. "We are a full service bank and are offering these students checking, savings and loan products and making them affordable and accessible in alignment with our mission. Our goal is to provide these students with a 'wow' experience and make them customers for life due to their positive experience with us. Our banking model will put approximately $70 million more in the pockets of students across America who are working hard to study in the hope of obtaining high paying jobs."
With a mission to extend its model of affordable banking to millennials, the bank already provides services free of any overdraft charges, along with 55,000 surcharge free ATMs and other lucrative offers.
"During our due diligence at Higher One, we identified the regulatory and compliance risks of the high-fee based model that the company was using to make money from its student loan disbursement business," stated Jay Sidhu, Chairman and CEO of BankMobile and Customers Bank, explaining the bank’s vision. "We are a full service bank and are offering these students checking, savings and loan products and making them affordable and accessible in alignment with our mission. Our goal is to provide these students with a 'wow' experience and make them customers for life due to their positive experience with us. Our banking model will put approximately $70 million more in the pockets of students across America who are working hard to study in the hope of obtaining high paying jobs."
"These students want to buy cars, plan for growing their families, and quickly pay off their student loans. The loans are meant to pay for tuition and textbooks, not high bank fees. Every time banks and credit unions charge overdraft fees, they are charging approximately 17,000% interest on the money they are 'lending,' which amounts to over $30 billion each year. This is outrageous. BankMobile will never charge an overdraft fee. Also, we will provide our student customers with access to over 55,000 free ATMs across the country. This is a commitment from BankMobile", Sidhu added.
BankMobile aspires for student-friendly banking and has gone the extra mile to load its app with features such as consultations with a financial coach, podcasts where successful millennials share their expertise, financial blogs and management tools.
"As a fellow millennial myself, it is my goal to change the -2% savings rate of the millennial generation and make sure they are on solid financial footing so they have the freedom to pursue their dreams," stated Luvleen Sidhu, Chief Strategy & Marketing Officer of BankMobile, shared her ambition to lead her fellow millennials to financial security.
Customers Bank is a subsidiary of Customers Bancorp, Inc., a bank holding company in Wyomissing, Pennsylvania and has an illustrious board of directors that includes the founder of London-based C&C Alpha Group, Bhanu Choudhrie.
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