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I In its July 30, 2013, executive summary, Green Dot pro-n its July 30, 2013, executive summary, Green Dot pro-
v
vided evidence that the perception is reality. The company ided evidence that the perception is reality. The company
said that the average monthly fees incurred by users of
said that the average monthly fees incurred by users of
Green Dot cards total $4.37, while the fees on the cards of
Green Dot cards total $4.37, while the fees on the cards of
its nearest competitor NetSpend average $10.28 per month.
its nearest competitor NetSpend average $10.28 per month.
Green Dot goes glamreen Dot goes glam
G When it comes to overdraft and nonsufficient funds (NSF)
When it comes to overdraft and nonsufficient funds (NSF)
fees charged to consumers, there apparently is no com-
fees charged to consumers, there apparently is no com-
parison. Green Dot said it does not charge its cardhold-
parison. Green Dot said it does not charge its cardhold-
ers such fees, while it estimated that NetSpend charged
T h ers such fees, while it estimated that NetSpend charged
he new mobile banking product offered by pre-e new mobile banking product offered by pre-
its cardholders between $25 million and $35 million in
its cardholders between $25 million and $35 million in
paid card pioneer Green Dot Corp. is featured on aid card pioneer Green Dot Corp. is featured on
p
overdraft and NSF fees in 2012. In a Seeking Alpha tran-
overdraft and NSF fees in 2012. In a Seeking Alpha tran-
season 12 of t
season 12 of the Emmy award-winning reality TV he Emmy award-winning reality TV
script of the Q2 earnings conference call, Green Dot Chief
script of the Q2 earnings conference call, Green Dot Chief
T show Project Runway. Green Dot's GoBank, called show Project Runway. Green Dot's GoBank, called
Executive Officer Steve Streit said, "Our strong conviction
the first bank account specifically designed for mobile the first bank account specifically designed for mobile Executive Officer Steve Streit said, "Our strong conviction
is that charging overdraft fees and especially charging
is that charging overdraft fees and especially charging
devices, is used by reality show contestants to make pur-devices, is used by reality show contestants to make pur- such fees to low-income Americans is wrong. And so for
such fees to low-income Americans is wrong. And so for
chases and budget finances. Additionally, the winning chases and budget finances. Additionally, the winning that reason, Green Dot does not do it."
that reason, Green Dot does not do it."
designer will be awarded $150,000 from GoBank to launch designer will be awarded $150,000 from GoBank to launch
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his or her own fashion line.his or her own fashion line. Project Outreachoject Outreach
Streit noted that Green Dot has embarked on a new eit noted that Green Dot has embarked on a new
In previous seasons of the show hosted by supermodel In previous seasons of the show hosted by supermodel Str
c
Heidi Klum on the Lifetime cable channel, designers were Heidi Klum on the Lifetime cable channel, designers were campaign called Project Outreach to raise the company's ampaign called Project Outreach to raise the company's
awar
given envelopes of cash for each challenge. At the begin-given envelopes of cash for each challenge. At the begin- awareness among inner city neighborhoods. Through eness among inner city neighborhoods. Through
Gr
ning of season 12, each designer was given $4,000 loaded ning of season 12, each designer was given $4,000 loaded Green Dot (the program manager and processor) and its een Dot (the program manager and processor) and its
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into GoBank accounts to be used for the duration of the into GoBank accounts to be used for the duration of the card issuing bank, Green Dot Bank, the company seeks ard issuing bank, Green Dot Bank, the company seeks
to offer Federal Deposit Insurance Corp.-backed prepaid ffer Federal Deposit Insurance Corp.-backed prepaid
season. The GoBank accounts are also being used to make season. The GoBank accounts are also being used to make to o
debit car
person-to-person money transfers between contestants person-to-person money transfers between contestants debit cards and other types of banking products to low-ds and other types of banking products to low-
income individuals in those neighborhoods. "We believe hose neighborhoods. "We believe
when they share expenses for team challenges. when they share expenses for team challenges. income individuals in t
Americans living in the country's inner cities desperately he country's inner cities desperately
Americans living in t
need safe, regulated bank accounts that inexpensively egulated bank accounts that inexpensively
"Project Runway teaches designers the skills they need "Project Runway teaches designers the skills they need need safe, r
satisf
to launch their own collections," said Sharon Pope, Chief to launch their own collections," said Sharon Pope, Chief satisfy the core banking needs that everyone requires to y the core banking needs that everyone requires to
Marketing Officer at Green Dot. "Part of that is managing Marketing Officer at Green Dot. "Part of that is managing c conduct their daily life," Streit said.onduct their daily life," Streit said.
your business expenses." When GoBank was launched your business expenses." When GoBank was launched
Streit pointed out that the majority of Green Dot's prod-eit pointed out that the majority of Green Dot's prod-
in June 2013, Green Dot touted the new mobile bank-in June 2013, Green Dot touted the new mobile bank- Str
ucts are concentrated in the stores of "main street retail-cts are concentrated in the stores of "main street retail-
ing product as a reinvention of the traditional checking ing product as a reinvention of the traditional checking u
ers," such as Wal-Mart Stores Inc. locations. "[T]hese retail-rs," such as Wal-Mart Stores Inc. locations. "[T]hese retail-
account. Among the features of GoBank is the ability to account. Among the features of GoBank is the ability to e
e
access account balances (the most common mobile bank-access account balances (the most common mobile bank- ers generally do not have a high concentration of locations rs generally do not have a high concentration of locations
in the inner city," he said. "So despite Green Dot's size he inner city," he said. "So despite Green Dot's size
ing behavior) without having to log in to accounts, and ing behavior) without having to log in to accounts, and in t
and notoriety in the prepaid industry, our products have
Fortune Teller, a budgeting tool of the mobile app that Fortune Teller, a budgeting tool of the mobile app that and notoriety in the prepaid industry, our products have
genera
alerts users when purchases are not affordable within alerts users when purchases are not affordable within generally not been as available for acquisition and reload-lly not been as available for acquisition and reload-
ing in the heart of where many potentially high-quality he heart of where many potentially high-quality
available balances.available balances. ing in t
customers live and work."
customers live and work."
In a related development, Green Dot signed surfer Bethany
In a related development, Green Dot signed surfer Bethany
Green Dot's strategy centers on distribution of its products
Hamilton to promote GoBank. As a teenager, Hamilton
Hamilton to promote GoBank. As a teenager, Hamilton Green Dot's strategy centers on distribution of its products
via check cashing stores, which are often located in inner-city
lost her arm in a shark attack while surfing, but returned
lost her arm in a shark attack while surfing, but returned via check cashing stores, which are often located in inner-city
neighborhoods. "[W]e are excited by the opportunity to part-
to competition. Her life story was made into the 2011 film
to competition. Her life story was made into the 2011 film neighborhoods. "[W]e are excited by the opportunity to part-
ner with these chains, both because it expands our mission
"Soul Surfer." ner with these chains, both because it expands our mission
"Soul Surfer."
to reinvent personal banking for the masses and it helps us
to reinvent personal banking for the masses and it helps us
Higher public profileofile
Higher public pr serve the customers who we're trying to reach," Streit said.
serve the customers who we're trying to reach," Streit said.
An online survey conducted by Bovitz Inc. in June 2013 for line survey conducted by Bovitz Inc. in June 2013 for
An on Green Dot intends to make its cards available in approxi-
Green Dot intends to make its cards available in approxi-
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Green Dot affirms the Pasadena, Calif.-based company's een Dot affirms the Pasadena, Calif.-based company's mately 20,000 check cashing locations across the United
mately 20,000 check cashing locations across the United
higher public profile. Of 458 individuals between the ages
higher public profile. Of 458 individuals between the ages States. The campaign began with the rollout of Green Dot
States. The campaign began with the rollout of Green Dot
of 21 and 45 who frequent check cashing stores, 54 percent
of 21 and 45 who frequent check cashing stores, 54 percent products via three check cashing chain stores in New York
products via three check cashing chain stores in New York
had heard of Green Dot, while runner-up NetSpend was City. "Of course, there's always uncertainty when you
had heard of Green Dot, while runner-up NetSpend was
City. "Of course, there's always uncertainty when you
recognized by 36 percent. According to the survey, Green
recognized by 36 percent. According to the survey, Green enter a new channel and it's hard to tell exactly how well
enter a new channel and it's hard to tell exactly how well
Dot was also considered the best brand, with the best our products will sell in check cashing locations," Streit
Dot was also considered the best brand, with the best
our products will sell in check cashing locations," Streit
consumer protections, the easiest features to use and the
consumer protections, the easiest features to use and the said. "But we believe that Green Dot has a strong chance
said. "But we believe that Green Dot has a strong chance
most likely card to get. Additionally, Green Dot cards are
most likely card to get. Additionally, Green Dot cards are of becoming the leading prepaid card provider in this
of becoming the leading prepaid card provider in this
perceived as having the lowest associated costs. channel."
perceived as having the lowest associated costs.
channel."
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