Many (perhaps most) small businesses are not well served by their bank. This was made clear during the Paycheck Protection Program where many big banks refused to work, at least initially, with some of their own small business customers because they were not big or profitable enough for the bank.
For the smallest of business, those with less than 25 employees, they were left waiting and wondering if they would receive a PPP loan at all. This led to some understandable frustration to say the least.
Today, into this mix, Kabbage has announced they have created a unique checking account targeted at small business. But this isn’t just any vanilla account that you could get at your local bank, they have some pretty compelling features.
Kabbage Checking will have a rich feature set for a small business bank account:
- Earn 1.10% paid monthly on your account balance.
- No minimum opening deposits.
- The ability to deposit cash at one of 90,000 locations nationwide.
- Free ATM access at one of 19,000 in-network ATMs nationwide.
- Wallets: Create up to five Wallets to track savings goals or manage your cash flow.
- Bill pay: Set up your vendors, organize your bills and issue payments electronically.
- Kabbage Debit Mastercard
- No overdraft fees.
I caught up with Kathryn Petralia, co-founder and President of Kabbage, yesterday to get some background on this new initiative. I asked her whether this was created in response to the pandemic and she said that it has been in the works for a long time and the launch was initially planned for earlier in the year. [Read more…]