Wal-Mart Rolls Out GoBank For Customers

Wal-Mart and Green Dot Corp. (NYSE: GDOT) announced a new exclusive product for the retail giant’s customers that will allow shoppers a free checking account for purchases.

The product, known as GoBank, will be rolled out nationally. It is a checking account linked to a MasterCard debit card that is FDIC-insured and will provide features, including no overdraft fees or minimum balance requirements.

Green Dot and Wal-Mart said the product should be available by the end of October.

“GoBank is breaking down the barriers to traditional banking and brings the benefits of a FDIC-insured checking account that’s loaded with features to a large segment of Americans,” said Steve Streit, founder and CEO of Green Dot Corp. and chairman of Green Dot Bank.

“Walmart customers want easier ways to manage their everyday finances and increasingly feel they just aren’t getting value from traditional banking because of high fees,” said Daniel Eckert, senior vice president of services for Walmart U.S. “Adding the GoBank checking account to our shelves means our customers will have exclusive access to one of the most affordable, inclusive and easy-to-use checking accounts in the industry. GoBank gives our customers yet another option as to how they manage their money. When our customers have options, they win.”

But look for the banking community to raise red flags.

The Arkansas Bankers Association tells our content partner, The City Wire, the product looks like it might be a good for the unbanked population and the industry probably won’t contest that segment, but there will more scrutiny of the overall product.

“My concern is with the uptick in fraud we are seeing in the retail segment. You know the problems Home Depot recently had. Simmons Bank for instance, issued new cards to all of its customers who had shopped Home Depot during the period in question. We don’t know if Green Dot will offer such protection on this account,” said Bill Holmes, president and CEO of the Arkansas Bankers Association.

He said the industry will likely object on the name alone —”GoBank.”

Read more from The City Wire at this link.