Customers Bancorp Inc (NYSE:CUBI) recently introduced a new service known as BankMobile. As the name suggests, BankMobile is a mobile banking app that is accessible through smartphones and tablets. The company said that it hasn’t formally started marketing BankMobile, but the service has already attracted hundreds of customers. What are the distinguishing features of BankMobile and can the service help Customers to improve its performance?
One of the most notable things about BankMobile is that it is the first fee-free mobile banking app out there. The fact that Customers Bancorp Inc (NYSE:CUBI) is offering BankMobile at no fee does not necessary mean that the company is up to a zero-sum game. Through BankMobile, Customers intends to offer a variety of services that will be able to earn it revenue and profits. More importantly, the no-fee structure of BankMobile is expected to woo more customers and allow the company to beat rivals in the mobile making sector.
Availability of BankMobile
Customers Bancorp Inc (NYSE:CUBI)’s BankMobile app is available on Apple Inc. (NASDAQ:AAPL)’s iOS and Google Inc (NASDAQ:GOOGL)’s Android. Making BankMobile available on these most popular mobile platforms is a deliberate move by Customers to ensure that the service gets the greatest exposure needed.
Customers Bancorp Inc (NYSE:CUBI) seeks to target the millennials with its BankMobile service. The company said that out of the hundreds of customers that have already enrolled for BankMobile, most of them are in the average age of 35-plus.
The company is also hoping to reach the underbanked and the middle-class Americans through the BankMobile services. Perhaps this is better explained by the no-fee structure of the service. Customers intends to enroll its student loan customers into BankMobile once they graduate. The company has about 150,000 customers in its student loan segment.
More about BankMobile
Those who enroll to BankMobile will have access to over 55,000 ATMs at no surcharge. They will also have access to a free financial advisor. Additionally, BankMobile accounts will attract higher savings rate than those offered by the major U.S. banks.
The aim of Customers Bancorp Inc (NYSE:CUBI) is to build relationships with the younger customers so it can offer more services to them for revenue. According to CEO, Jay Sidhu, BankMobile will not be profitable soon, at least not within two years. However, once they build strong customer relationships, and the business picks up, they will be able to make significant profits.