Wells Fargo to launch PFM-based mobile-only account

Wells Fargo to launch PFM-based mobile-only account

Wells Fargo is to launch a new mobile-only customer account tied to a standalone AI-based budgeting and savings app.

The Greenhouse app operates across two distinct accounts: one for weekly spending tied to a dedicated debit card, and one account reserved for savings and bills. In this latter account, customers can set aside money to build a savings cushion as well as for specific expenses, such as rent or a phone bill.

The app ties the two bank accounts together and provides spending trend visualisations, personalised insights based on an artificial intelligence engine, and alerts to help customers stay on track.

Avid Modjtabai, head of payments, virtual solutions and innovation at Wells Fargo, says the new account has been designed to appeal to a broad base of consumers, many of whom have several income sources or are paid infrequently, which can make budgeting a challenge,

“Whether you are new to banking, don’t have regular paychecks, or typically manage money with cash, we believe the Greenhouse experience can help you manage day-to-day spending while planning for the future,” he says.

The move bring the banking behemoth into a market which has been identified by a host of social savings startups as an overlooked aspect of banking that is ripe for the picking.

The Greenhouse app will be available in a limited, national pilot in the first quarter of 2018 and is slated to launch for Apple iPhone users during the first half of 2018.

Comments: (3)

A Finextra member
A Finextra member 03 November, 2017, 12:351 like 1 like

I think some incumbents misunderstand the nature of "mobile". Mobile is neither a magic panacea not a silver bullet per se, it's just a means to an end. It can be "mobile only", or "mobile first", or "mobile also". Ultimately, it's the backend that drives the services, not UI (mobile).

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 03 November, 2017, 18:28Be the first to give this comment the thumbs up 0 likes

Earlier today, I came across a very interesting article on why neobanks have been largely a flop show. It makes a similar point about mobile-only/first. 

http://edgardunn.com/2017/11/new-banking-being-digital-being-different/

A Finextra member
A Finextra member 06 November, 2017, 10:471 like 1 like

Thanks for the interesting link.

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