By: Ken Chase.
Estimated reading time: 2 minutes
JPMorgan Chase customers with the bank’s Secure Banking no-overdraft checking account can now enjoy early access to direct deposit payments, according to Head of Growth Financial Products Ryan MacDonald. The new feature will allow those customers to get access to payroll, government benefits, pensions, and tax refund direct deposits as much as two days earlier than usual.
As MacDonald noted, “Those couple days are often the difference between looking for money from family or not paying that bill on time and getting charged a late fee.” For most customers who utilize the Secure Banking product, that early access will allow them to receive their pay on Wednesday instead of the typical Friday.
MacDonald credited fintech firms for drawing attention to the idea of gaining early access to payments. As he pointed out in an interview, most customers had not even considered the option of receiving their payments early until those financial technology upstarts entered the market. “As we evaluated it, we think that there’s a real need for certain customers to have this.”
JPMorgan’s Secure Banking product costs customers $4.95 per month and has no minimum balance qualifications. MacDonald claims that the product is geared toward individuals and families who earn less than $55,000 annually. According to him, roughly 1.4 million customers currently use the product and will now receive early direct deposits automatically.
Apparently, JPMorgan has no intention of slowing down on innovation for that group of customers. MacDonald also claims that the firm plans to unveil similar solutions in the future, including products that will allow those customers greater access to small and installment loans, designed to help them gain better control of their finances during emergency situations.
JPMorgan Chase’s adoption of this fintech-developed feature is another reminder of the need for America’s traditional financial institutions to focus on keeping pace with technological disruptions from the fintech sector. According to MacDonald, JPMorgan prides itself on being a “fast follower” of those emerging fintech features, and is eager to adopt new changes when they can provide real benefits to the bank’s customers.