28 July 2016
Find out more

Pre-paid outfit Green Dot cleared to buy bank

24 November 2011  |  4909 views  |  0 Dollar note jigsaw

US pre-paid card outfit Green Dot has been given the all clear by regulators to buy Bonneville, a small Utah-based bank.

The Federal Reserve Board and Utah Department of Financial Institutions have both signed off the acquisition, paving the way for Green Dot to become a bank holding company.

Green Dot currently sells general-purpose reloadable pre-paid cards through national retail chains and online that are issued by third-party banks that maintain accounts on behalf of the firm's customers.

The company plans to rename Bonneville Green Dot Bank and use it to issue its own cards linked to FDIC-insured accounts and provide settlement services.

However, a major contract that sees cards issued through GE Money and sold at WalMart stores will not be affected.

Steve Streit, CEO, Green Dot, says: "This acquisition will give us the flexibility to better control our own destiny, by allowing us to create products that best suit the needs of our current and future customers. This allows us to become a bank truly dedicated to serving the needs of the large and growing population of consumers who are looking for a better way to bank."

The Fed Board voted four to one to approve the deal, with Governor Elizabeth Duke dissenting because "companies with narrow business plans face risks that are different than those faced by more diversified companies and are more vulnerable to unexpected shocks".

Shares in Green Dot closed up 7.7% at $29.62 yesterday.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

US regulators turn attention to pre-paid money laundering threat

US regulators turn attention to pre-paid money laundering threat

23 June 2010  |  10695 views  |  0 comments
Walmart makes financial services push

Walmart makes financial services push

16 June 2010  |  7754 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comVisit VocaLink.comFind out more

Top topics

Most viewed Most shared
satelliteContactless Bitcoin startup Plutus Tap &am...
9508 views comments | 9 tweets | 4 linkedin
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
9479 views 14 comments | 33 tweets | 38 linkedin
Apps crush internet for UK banking loginsApps crush internet for UK banking logins
8320 views comments | 19 tweets | 25 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
6427 views comments | 15 tweets | 19 linkedin
hands typing furiouslyHow machine learning can cut costs on tran...
6059 views 0 | 12 tweets | 3 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job