Some customers will be able to get early access to their direct deposits, a feature popularized by rivals, as it hopes to attract users to a no-overdraft checking account.
Ryan MacDonald, head of growth financial products for Chase, said that the bank is going to switch to this feature for customers of its secure banking product.
He said that getting paid on a Wednesday is usually the case.
MacDonald said in an interview that the difference between looking for money from family or not paying a bill on time is often two days.
The biggest U.S. bank by assets is taking this step as the industry faces increasing pressure from regulators. The CEOs of the three largest U.S. institutions have refused to end the charges altogether.
Banks have drawn attention to existing products that protect users from overdraft fees, while still offering most of the functions of full service accounts.
The Secure Banking product is $4.95 a month and has no minimum balance requirement. The service is available to households that earn around $55,000 a year. Direct deposit is the most common method of payment for most customers.
The bank can be a follower of rivals when they create must-have features. Chime and Current are examples of start-ups that have gained millions of users.
MacDonald said that the fintechs are doing a good job of disrupting the space. Before some of these players came in, customers didn't think about early access to payment. There is a need for certain customers to have this.
The value proposition includes both digital services and a broad physical network of about 4,700 branches.
He said that the bank is working on introducing other solutions for this group, including small loans or installments, to help users smooth out their financial needs when emergencies arise.
All Rights Reserved © 2024
