There has become a current change in how US citizens are handling banking institutions and cash. In the past, it was not only common but also necessary to have a checking account. A checking account was also a prerequisite for many financial loan inquiries. No checking account resulted in no loan provider was even going to look at a credit application. Today far more individuals are starting to abandon the normal old checking account in support of a brand new way to store cash.
The concept of using a piece of paper to create and I.O.U. Will seem quite strange to individuals in a decade. Checks and bank account are starting to disappear from modern society. Individuals are deciding to pick an easier way to pay for their expenses, and it is in the type of a prepaid card. It is little enough to fit in a wallet, and easy enough to make use of. By the time a consumer has finished filling one check, 5 consumers have already paid for their products with a prepaid card. This is fantastic news for consumers, but exactly where does this leave banking institutions?
Banks are always searching for methods to make more cash. The whole reason a bank exists is to generate profits. Banks all around the nation are now starting to add prepaid debit cards to their type of bank goods. Some banking institutions are strongly going after this option of payment more than others.
One of America’s largest banking institutions, financing solutions company JPMorgan Chase lately launched a brand new prepaid card, and they’re actively pushing this prepaid card onto their existing consumer base. It tends to make every thing easy for the banking giant. There is much less document for them, much less overhead, and fewer personnel to handle the new Liquid prepaid card. Consumers will be in a position to get and load a card at virtually any Chase Atm machine.
The prepaid card can then be used anywhere a Visa card is approved. When the card is empty, consumers can just refill the card at a local Chase Atm machine. All this will still only cost consumers a little fee every month of $4.95. This might look fantastic to consumers, but it just makes more cash for JPMorgan Chase. Other banking institutions are lining up to make more cash too. Wells Fargo lately began providing the exact same option to the customers.
The prepaid card model is big business for banking institutions and other firms that are providing this particular service. In 2011 consumers loaded more than 50 billion dollars onto prepaid credit cards. That really pales in comparison to what’s being expected for future years. Analysts are thinking that by the year 2014 consumers will probably be dumping more than 160 billion dollars into prepaid credit cards.
Even with incorporating prepaid credit cards, are nonetheless trying to find loans at an all-time new high. Payday-loans.org has seen a huge increase in payday cash loan requests and mortgage approvals in the past couple of months. The economic climate is starting to return around, and consumers are starting to spend far more cash. This is a great sign for both consumers and banking institutions.