Online lender Kabbage is moving deeper into business banking with the launch of a fee-free, interest bearing, checking account.
With US banks under pressure over a lax response to SME lending during the ongoing pandemic, Kabbage is taking a broad swipe at the market with an account "built for the smallest of companies, but fit for the largest".
There are no opening fees or maintenance fees for Kabbage Checking accounts and there are no minimum or daily balance requirements. Instead, all customers will earn a 1.10% annual percentage yield (APY) paid out monthly.
“Amidst one of the largest financial crises in history, we helped over 225,000 small businesses access services many of their long-time bank partners would only provide to their largest customers,” says Kabbage president Kathryn Petralia. “We believe in the businesses too often left out, overlooked and underestimated. Kabbage Checking is a new banking service built to give those small businesses an upper hand to earn more, save more and grow their business faster without sacrificing anything they expect from a bank.”
Kabbage is piggy-backing off Green Dot's banking licence to launch the new account, which can be opened with no minimum opening deposits, and comes with free ATM access, PFM-based wallets, electronic bill pay, and a debit Mastercard.
The company has set up a waitlist ahead of a full-scale launch later this year when it expects to also support wire transfers and mobile remote deposits.