Another Operator has launched a direct mobile digital banking scheme in Puerto Rico. T-Mobile MONEY is a free, interest making mobile checking account that anyone can open and control straight from their smartphone. T-Mobile MONEY lets customers earn a massive 4.00% annually on balances up to $3,000. This is 80 times higher than the standard checking account in the U.S.A. Furthermore, there are no big bank overdraft account fees.
“T-Mobile recently launched the first and only 5G network in Puerto Rico, with coverage in areas of all 78 municipalities across the Island including Vieques and Culebra … and now with T-Mobile MONEY, the Un-carrier is the first wireless company to bring digital banking to Puerto Rico,” said Jorge Martel, Vice President and General Manager of T-Mobile Puerto Rico.
“T-Mobile’s continued investment in Puerto Rico creates opportunities that foster the Island’s socio-economic development. We are committed to our customers and to bringing technology and innovation to Puerto Rico.”
Banks make their money from fees. In 2018, American citizens paid around $36 billion in account fees alone. The idea of T-Mobile money is that there are no account and overdraft charges, no charges for using ATMs in the US and overseas, and also, no charges from T-Mobile money for using out-of-network ATMS. There is also a no minimum balance requirement.
Customers will also receive more interest on their money. T-Mobile postpaid customers will get 4.00% APY on balances up to $3,000 and 1.00% APY on every dollar over $3,000 when they register for a T-Mobile ID and deposit at least $200 on a monthly basis. Even customers that don’t use this scheme score 1.00% APY on all balances. T-Mobile postpaid customers can also get ‘Got Your Back’ overdraft protection when they sign up for T-Mobile MONEY, meaning, that when the unexpected occurs, T-Mobile customers can step in the red, up to $50, without any penalty. However, customers are required to bring the account back to a positive balance within 30 days to continue using ‘Got Your Back’.
T-Mobile MONEY is created in partnership with:
T-Mobile MONEY accounts are held at BankMobile and deposits are FDIC-insured up to $250,000.
Digital Banking Built for Mobile
Inside Telecom is a huge advocate of mobile banking and many of our recent articles indicate that consumers are now outgrowing the somewhat rigid services provided by traditional banks. Now, 7 out of 10 consumers bank digitally, and smartphones are the fastest growing digital platform. Surprisingly, less than half of traditional banks say they have a digital strategy, and only 13% of them anticipate their core systems are able to keep up with digital innovation.
Mobile digital banking schemes adopted by international operators like T-Mobile and Telefonica are mobile-first, allowing customers to manage their accounts directly from the app (in real time), — make mobile check deposits, set up direct deposit, pay bills, send a check, pay with a mobile wallet such as Google Pay and Samsung Pay, transfer money and even make payments person to person. Mobile banking apps also come with biometric security using fingerprint and Face ID login.