Member Exclusive, New banks

With SoFi, Samsung to launch new bank product this summer


  • Samsung has partnered with SoFi on an app that will incorporate a suite of bank services.
  • Samsung Money by SoFi promises to provide a debit card, better FDIC insurance, and Samsung shopping rewards.
close

Email a Friend

With SoFi, Samsung to launch new bank product this summer


Samsung has partnered with SoFi to release new banking services: Samsung Money by SoFi. The program will provide Samsung users with an actual debit card, which will be issued by Bancorp Bank. 

In addition to the debit card, Samsung Money will offer an array of perks for its customers, including no fees, higher earned interest compared to the national average for checking accounts, and Samsung Rewards points through use of the card, which will provide members with discounts on future Samsung purchases.

Samsung Money will also include greater FDIC insurance coverage than the average debit card– $1.5 million, which is six times the amount of the average debit card coverage. The product will be incorporated into the Samsung Pay App. Until the physical card arrives, customers can use the Samsung Pay App to make their purchases.

Source: Samsung

For SoFi, this partnership marks its entry into B2B revenue. The tech company just purchased Galileo, a financial platform that provides APIs allowing companies to launch financial products and issue both virtual and physical debit cards without the hassle of getting a banking license. 

According to Patrick Sells, Chief Innovation Officer at Quontic, these types of partnerships are only to be expected. “With the rise of financial technology, it’s easier and easier and customers are looking for vendors who can provide more and more services.” 

SPONSORED

This is especially true for telecom companies, which are constantly looking for new ways to stay afloat in the rise of consumer expectations. Like Samsung, some of these companies are teaming up with financial service providers to bring mobile accessible financial products to customers. T-Mobile, for example, has partnered with BankMobile, a division of Customers Bank, to offer T-Mobile Money to its users. The platform has been available to the public since April 2019. The program functions much like Samsung Money, boasting higher than average interest and no fees for users.

One telecom company is even taking it a step further: with a mobile bank service already available in France since 2017, Orange plans to continue spreading Orange Bank to other countries throughout Europe. The company’s plan is to spread its banking service to seven countries by 2023. 

This trend of virtual banking and independent financial services is spreading through the consumer world. With more companies offering their own financial services, including household names like Apple and Uber, traditional banks are questioning how they will be able to stay relevant in the rapidly changing financial world.

“Banks are not going to disappear or be disrupted – they are going to (more) rapidly and strategically partner with fintechs,” says Yvan de Munck, director of client success at Informa.

In fact, many banks are doing just that. With banks like BBVA and Green Dot forming partnerships to provide their own financial service platforms, it may be just a matter of time before others follow suit. 

0 comments on “With SoFi, Samsung to launch new bank product this summer
”

New banks

Radhika Duggal, CMO of community and business development at Chase, talks financial literacy for families

  • Financial literacy is becoming a crucial checkbox to mark for all players in the financial ecosystem.
  • Chase’s CMO of community and business development, Radhika Duggal, recently sat down with Tearsheet to give her thoughts on the topic.
Rivka Abramson | October 22, 2021
New banks

Behind Upgrade’s move to add BNPL capabilities

  • Upgrade is adding BNPL to its personal loans and payment cards, but with a twist.
  • The company also intends to make a push to bring BNPL payments offline and into shops.
Subboh Jaffery | October 08, 2021
New banks

9 insightful things overheard at Tearsheet’s 2021 Convergence Conference

  • Tearsheet's Convergence Conference set the tone on how banks, investment and payment firms, and fintechs are planning their product roadmaps.
  • It's clear that the trend of rebundling the bank will continue, as we see the emergence of super apps.
Tearsheet Editors | September 30, 2021
New banks

‘We’re in a constant beta state’: How Citizens Bank is adapting to the post-Covid needs of young consumers

  • Citizens Bank is targeting a younger demographic of customers with its national, digital offerings.
  • That means rethinking its branch network and upgrading its products and services to match the needs of the modern consumer.
Ismail Umar | September 29, 2021
New banks

Convergence Conference 2021: All session videos

  • Tearsheet's 2021 Convergence Conference looked at how FIs and fintechs are becoming financial super apps.
  • Here are all the session videos from the event.
Shabih Rao | September 27, 2021
More Articles