Last week, wireless carrier T-Mobile announced it would throw its hat into the mobile banking arena with the national rollout of T-Mobile MONEY. The mobile app offers low or no-fee checking-like services, out-of-network ATM usage fees and the ability to earn 4 percent APY on balances of up to $3,000. The checking account requires no minimum balance, and allows overdrafts of up to $50 with no penalty fees — as long as the balance is made positive within 30 days.
“Traditional banks aren’t mobile-first, and they’re definitely not customer-first. As more and more people use their smartphones to manage money, we saw an opportunity to address another customer pain point,” said John Legere, CEO of T-Mobile, according to a press release.
This might be a ploy to retain T-Mobile customers, but it’s also intended to appeal to consumers without any real affinity for a more traditional financial services provider, including the highly coveted millennial, as well as the unbanked and underbanked.