Today In Digital-First Banking: Green Dot Debuts GO2bank; Stimulus Checks Pose Challenges For TurboTax, H&R Block

In today’s top news in digital-first banking, California FinTech Green Dot is rolling out the GO2bank mobile banking to help cash-strapped individuals, while stimulus checks are reportedly posing challenges for some users of H&R Block and TurboTax. Plus, the banks that help support supply chains in Europe are set to encounter a dramatic rise in bad debts.

Green Dot Introduces GO2bank To Help Cash-Strapped Consumers

California FinTech Green Dot is launching the mobile bank GO2bank to help individuals who are living paycheck to paycheck. The bank showcases up to $200 in overdraft protection, high-value rewards, high-interest savings and chances to create, develop and monitor credit. “GO2bank is built to be the go-to destination for seamless, affordable, useful banking — combining the security, stability and experience of an FDIC-insured bank with the innovation and agility of a leading FinTech,” Green Dot Corp. CEO Dan Henry said in a press release.

Stimulus Checks Pose Issues For H&R Block, TurboTax

Americans anticipating another stimulus check deposited into their accounts have not received payment as expected. Individuals who filed 2019 taxes with TurboTax or H&R Block told one news outlet that they have not seen a deposit as anticipated. The issue could be caused by the IRS sending stimulus payments to non-permanent “pass-through” accounts created by TurboTax and H&R Block in past years that individuals can’t access now. The IRS is anticipated to reissued payments to the correct bank accounts, but the total workflow could delay payments.

Supply Chain Finance Firms Could See Spike In Defaults In Europe

The banks that help support Europe’s supply chains are set to face a very high increase in bad debts as a leading watchdog in the region introduces more restrictive standards. The European Banking Authority (EBA) will begin making firms that provide loans in the region adhere to one meaning for default this year. One factoring and commercial finance industry representative told a media outlet that the new rules might categorize between 15 percent and 20 percent of the invoices for which factoring companies are responsible as defaulted.