Huntington strengthens customer safety net with early access to paychecks
The news: Huntington will allow you to customers access direct deposits, including paychecks, up to two days in advance thanks to a new free feature, Advance payment. The new functionality is available to customers who have systematically made certain types of direct deposits: wages, military income, pensions and social security. Eligible customers will automatically be enrolled in Early Pay and receive notification emails regarding the change.
Trend research: Early access to paychecks was initially an important offer of neobanks.
- The challengers who were the first to discover the feature film, in particular Varo, Carillon, and Current. Early access to paychecks is becoming less and less of a competitive differentiator, as a growing list of incumbent banks is co-opting it.
- Huntington is the latest bank in the United States to offer early access to paychecks. Two other incumbents recently unveiled the same functionality. Fifth Third Bank ad last week he created his own feature, also called Advance payment, accessible to all its customers after selective deployment. A capital letter also recently unveiled its own version, both this and Fifth Third also use a maximum of two days.
The big takeaway: Early Pay expands Huntington’s safety net for customers, which aims to help their finances in the short term, and which the bank calls its Philosophy of banking fair play. The other support includes:
- A small loan product, Cash on hold, which allows customers to access up to $ 1,000 no fees or interest if they accept automatic payments.
- Of them shapes protection of overdraft fees: $ 50 Security zone, which protects depositors from overdraft fees up to $ 50, and one 24 hour grace period before deducting fees from those who exceed the limit.
Huntington can use the breadth of its liquidity support as a competitive force to keep up with neobanks and incumbent banks that are also playing a role for clients financially affected by the economic fallout from the pandemic.