#DigitalBanking / Green Dot launches GO2bank to compete with challenger banks

Green Dot … unveiled GO2bank, the prepaid card issuer’s challenger bank aimed at serving the low-and moderate-income (LMI) market.

The digital bank, which the company has been building since early last year, offers overdraft protection up to $200, early paycheck access, a high-interest savings account and access to a secured credit card, available with no credit check or annual fee.

Green Dot CEO Dan Henry said … "GO2bank is built to be the go-to destination for seamless, affordable, useful banking — combining the security, stability, and experience of an FDIC-insured bank with the innovation and agility of a leading fintech."

[Green Dot’s senior vice president:] "This is a real bank. I see a lot of competitors — new neobanks that are essentially marketing firms because they don’t have their own infrastructure … No. 1, they are nonbank holding, and No. 2, they don’t have their own tech stack. So, it would be unfair to compare against any of those guys."

Another differentiator that sets the Pasadena, California-based company apart from many challenger banks is its physical footprint…