BlueVine Introducing Small Business Banking
Over the past few years, the concept of online lending for small businesses has continued to grow. In turn, many of these FinTechs have expanded the scope of their operations to serve entrepreneurs in other aspects of their finances. The latest of example of this comes from BlueVine, who today is introducing a small business checking account it hopes will offer entrepreneurs a better home for their funds.
BlueVine Business Banking offers entrepreneurs a checking account that carries no monthly fees. Additionally there is no required minimum deposit to open an account nor a minimum balance to maintain. Speaking of balances, BlueVine’s checking account will pay 1% interest on balances of more than $1,000. Accountholders can also use their BlueVine Business Debit Mastercard to access their money at more than 38,000 MoneyPass ATMs for free as well as deposit checks using the mobile app. As for depositing cash, BlueVine is partnering with another color-named FinTech — Green Dot — to allow cash deposits at more than 90,000 retail locations.
Notably, since BlueVine is not a bank, this new account is serviced by The Bancorp Bank. As a result, funds are eligible for FDIC deposit insurance up to the standard $250,000 per accountholder.
Currently BlueVine is offering a waitlist for the Business Banking feature but expects to officially roll out the program early next year. When applications do open, the company says business owners will be able to open in account “in just 60 seconds.” This application process will ask for basic info about the business owner and their business as well as require a Tax ID or Social Security number. Applicants must also be over 18 years old and a United States citizen or a resident with a verifiable U.S. address.
The introduction of BlueVine Business Banking comes after a survey conducted by the company found that a mere 9% of small business owners feel their current bank meets their needs. That same survey also found that 65% of respondents paid fees for their business banking accounts, with 15% of those entrepreneurs stating that those fees were too high. Similarly 17% said their current accounts either didn’t offer any rewards program or that the rewards offered were poor.
In a press release announcing the new small business banking accounts, BlueVine co-founder and CEO Eyal Lifshitz said, “Historically, banks have under-invested in small businesses and as a result, small businesses have been left with products and services that don’t meet their needs. With our single, obsessive focus on small businesses since our founding in 2013, we understand how small businesses operate and created BlueVine Business Banking to help them bank with ease.”
It’s interesting to see that, just as several FinTechs have entered the realm of personal banking, BlueVine is now doing the same for business checking. Given their success with lending and helping entrepreneurs with cashflow, this expansion makes a lot of sense for the company. Hopefully once BlueVine Business Banking begins its roll-out, these accounts will make sense for small business owners as well.