GoBank is removing some friction from its onboarding process.
The mobile-first bank account from prepaid company Green Dot turned heads recently when it abruptly stopped onboarding new users via mobile and instead forced them to purchase a “starter kit” for $2.95. The kit is available only at Walmart, a hugely important company for Green Dot, as sales from Walmart stores make up a huge chunk of its revenue. It consists of a prepaid MasterCard that, upon activation, opens an actual transactional account at Green Dot Bank. Activation consists of a traditional prepaid money load, done at the register.
Almost no personal information is required at the register, but later, customers need to supply a few items to the bank for identity verification.
The kits are still available, but GoBank announced the following with its latest update for iOS and Android, released last night:
What’s New in Version 2.1.6
You no longer need a GoBank starter kit to open an account! Just download the app or visit GoBank.com to get started.
You can still pick up a GoBank starter kit at a participating Walmart for $2.95 and use the app or GoBank.com to sign up. After signing up, you’ll be able to use the starter debit card right away to make purchases and ATM transactions.
Forcing users to buy kits at Walmart seemed to close GoBank off from its original audience, as expressed to Bank Innovation by Green Dot CEO Steve Streit back in 2013: “GoBank customers are younger, more tech savvy.” Its marketing push included featuring prominently on the TV show “Project Runway.” Not exactly a characterization of Walmart’s customer base, but it seemed the retail giant forced Green Dot’s hand, and featuring prominently at Walmart isn’t a bad way to pick up some customers.
But it now appears GoBank may attempt to appeal to a bifurcated audience, Walmart shoppers on one hand and mobile-savvy millennials on the other. Its marketing in the coming year will be telling.
We have reached out to Green Dot for comment and will update this story as appropriate.