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Fifth Third Bank’s new digital offering could help it compete with fintechs

  • Momentum Banking by Fifth Third offers many features that are generally associated with digital banks.
  • This product may help the regional Midwest bank to compete against neobanks and fintechs.
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Fifth Third Bank’s new digital offering could help it compete with fintechs

Fifth Third Bank, a 163-year-old institution with $207 billion in assets, recently launched Fifth Third Momentum Banking, a digital solution focused on meeting the everyday banking needs of customers. The product aims to combine the modern features of a digital bank with the security and local presence of an established financial institution.

Momentum Banking has no monthly service charge and no minimum deposit required to open a checking or savings account. Its different features are aimed at helping consumers to easily send and receive payments, avoid cash shortfalls, and achieve their savings goals quicker. A notable feature is MyAdvance, which advances funds of $50 or more to customers against future direct deposits.

“Research tells us that one in three Americans is living from paycheck to paycheck. This makes MyAdvance very useful, as it essentially lets you borrow from your future self,” said Melissa Stevens, executive vice president and chief digital officer at Fifth Third Bank. “You can simply log into the app and pay a small fee to get early access to your funds, and then pay yourself back when the next direct deposit comes into your account.”

Another useful feature is Immediate Funds, which makes check deposits instantly available for customers. “Lots of times, there’s a hold on your deposit with banks, because they need to make background checks,” said Stevens. “But if you want, you can pay a small upfront fee in the mobile app, which will give you full access to those funds immediately upon putting that check in the deposit.”

 


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