Fifth Third Bank Helps Customers Pay Down $5 Million in Student Loan Debt
September 15 2020 - 09:15AM
Business Wire
Momentum App Rounds Up Purchases to Pay
Loans off Faster
Fifth Third MomentumTM recently hit a milestone: It now has
helped customers pay down $5 million in student loan debt. The
Fifth Third Momentum app, which launched three years ago, allows
customers to round up their debit card purchases to apply to a
student loan.
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Fifth Third's Momentum app has helped
customers pay down more than $5 million in student loan debt.
(Photo: Business Wire)
“We’re proud to play a role in helping families find solutions
for student loans,” said Melissa Stevens, chief digital officer for
Fifth Third Bank. “Even in times of hardship due to the pandemic,
we want to help our customers continue to work toward a goal we
know causes a lot of stress, especially for our Millennial
customers.”
Fifth Third Momentum allows users either to round up debit card
purchases to the next dollar or to add $1 to every purchase. The
extra amount is then applied to the balance of a designated student
loan. Payments are made on a weekly basis once a minimum of $5 is
rounded up.
Fifth Third estimates that customers who round up $25 a month
using the Fifth Third Momentum app could pay off 20-year loan three
years sooner and pay 8% less in total by avoiding interest that
would have accumulated.*
“Our customers tell us that they love how using the app is
actually fun. They get badges as encouragement when they hit
certain milestones or payments as they make extra payments toward
their loans,” Stevens said. “We’re so happy to have helped our
customers already pay down $5 million in student loan debt and look
forward to many multiples of that number.”
Because student loan debt affects more people than just the
borrower, Fifth Third Momentum allows graduates’ family members to
use the free app, too. They can sign up with their own Fifth Third
debit cards and connect their purchases to help their loved ones
pay down their student debt.
Fifth Third Momentum is available to any Fifth Third debit card
user and can be used with more than 30 major student-loan servicers
– public and private. Because the app is easy to set up and doesn’t
require much daily thought, the bank hopes the automated
micropayments platform will make reducing debt something as easy
and inexpensive day-to-day as buying a cup of coffee.
To get started, customers download the app (Android or iOS) and
enter the name of the institution servicing the student loan. The
app gives tips to help locate the loan number. Customers then
decide on their preferences, including whether to round up
purchases or contribute $1 for every debit-card transaction. Once
$5 in payments is accumulated, the money is automatically sent to
the student-loan account at the end of the week. To keep our
customers motivated, they earn badges, called #Wins, for continuing
to stick with this new habit.
Helping people towards their goals is a key tenet of Fifth
Third’s digital strategy. In addition to Fifth Third Momentum,
another free app created by the Bank, Dobot, helps its users reach
short- and long-term savings goals. The app, which is available to
customers and non-customers alike, automates savings, and sends
tips and encouragement along the way. It helps users focus on what
they are saving for and creates an easy path to get there.
For more information, visit 53.com/momentum or
www.thedobotapp.com
* Example is based on a loan amount of about $37,000 – with a
fixed interest rate of 6.80%.
About Fifth Third
Fifth Third Bancorp is a
diversified financial services company headquartered in Cincinnati,
Ohio and the indirect parent company of Fifth Third Bank, National
Association, a federally chartered institution. As of June 30,
2020, Fifth Third had $203 billion in assets and operated 1,122
full-service banking centers and 2,456 ATMs with Fifth Third
branding in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida,
Tennessee, West Virginia, Georgia and North Carolina. In total,
Fifth Third provides its customers with access to approximately
53,000 fee-free ATMs across the United States. Fifth Third operates
four main businesses: Commercial Banking, Branch Banking, Consumer
Lending and Wealth & Asset Management. Fifth Third is among the
largest money managers in the Midwest and, as of June 30, 2020, had
$405 billion in assets under care, of which it managed $49 billion
for individuals, corporations and not-for-profit organizations
through its Trust and Registered Investment Advisory businesses.
Investor information and press releases can be viewed at
www.53.com. Fifth Third’s common stock is traded on the Nasdaq®
Global Select Market under the symbol “FITB.” Fifth Third Bank was
established in 1858. Deposit and Credit products are offered by
Fifth Third Bank, National Association. Member FDIC.
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version on businesswire.com: https://www.businesswire.com/news/home/20200915005836/en/
Laura Trujillo (Media Relations) Laura.Trujillo@53.com |
513-534-NEWS Chris Doll (Investor Relations)
Christopher.Doll@53.com | 513-534-2345
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