Higher One Adds New Checking Account Options
February 28 2012 - 9:26AM
Business Wire
Higher One, a technology and payment services company focused on
higher education, today announces expanded checking account options
available for college students. Previously only offered to current
customers, Higher One now offers new customers immediate access to
three checking account options tailored to suit the differing
personal banking behavior of students.
These new checking accounts offer distinctly different features
than the basic OneAccount, such as the option of no PIN fees, a
specified number of foreign ATM fee reimbursements, and access to
uncomplicated online budgeting tools that help students keep track
of their spending and set budgeting goals.
“We are continually listening to students to find out what they
prefer and don’t prefer about the services that we offer. The
additional checking account options that we are announcing were
very popular with current customers and we are making them
available to new customers in a direct response to the needs that
have been expressed to us,” said Miles Lasater, co-founder and COO
of Higher One.“
“These checking accounts are all FDIC-insured, with no minimum
balance requirement, offered through our banking service provider.
The OneAccount suite of checking accounts is unique in that
students choosing to open an account need not undergo a credit
check to qualify. Most importantly, the checking accounts are
linked to a Debit MasterCard® and are not linked to a prepaid debit
card or a credit card,” Lasater added.
“As students, we began working with other students over a decade
ago with the guiding principles of transparency and providing a
straightforward banking experience. Today, students are not
conventional—in fact the average age of our customer is
approximately 27. In response to their varied ages and backgrounds,
we expanded our options so consumers can have more freedom to
exercise low or no-cost checking, based on their individual banking
patterns,” Lasater concluded.
The OneAccount is offered as a choice for students as a part of
Higher One’s proprietary OneDisburse® Refund Management® funds
disbursement service that handles financial aid disbursements to
students at more than 500 college and university campuses across
the U.S. Higher One assists colleges and universities comply with
the Department of Education’s regulations made in 2008 regarding
debit cards and the disbursement of Title IV funds.
As part of Higher One’s OneDisburse Refund Management service,
students are not charged to receive their refunds. Higher One is
also required under federal law to submit to examination by the
Federal Deposit Insurance Corporation (FDIC) and the Office of the
Comptroller of the Currency (OCC), the federal regulating bodies of
its bank partners.
A recent analysis was conducted by Bretton Woods, evaluating the
costs of maintaining, accessing and using financial aid refunds via
various banking and other options available to students, including
products from national banks, regional banks, reloadable prepaid
cards, and paper check cashing services.
“The majority of available accounts, by market share, are not
free,” says Michael Flores, CEO of Bretton Woods. “Higher One’s
core OneAccount product demonstrates it is on the low end of the
cost scale when compared to bank and prepaid card offerings. Higher
One is an option (not mandated) for those students who either like
the features of the account or may not qualify for a traditional
bank account. The OneAccount customer’s average age is in the
late twenties and they have had some financial experience.”
OneAccount features such as peer-to-peer transfers and mobile
check deposits were built around the actual mobile and online usage
patterns of students—not based on an outdated brick and mortar
concept of banking. Higher One actively utilizes its online model
to educate consumers on the fee schedule for all three accounts,
which are one click away on the website, along with instructional
videos on how to avoid these fees and use the accounts for
free.
James Garcia, student at East Los Angeles College has been a
OneAccount holder for more than two years. “What I like most about
my account is that I can get access to my funds immediately. I
found the website to be really helpful and straightforward—I
understand how my account works. To this day, I don’t think I’ve
ever had to pay a fee.”
Higher One is committed to increasing financial literacy among
students and has dedicated resources to this effort. These include
its Financial Intelligence product offering which is an online
financial literacy course for schools, the Financial Literacy
Counts grant program which provides funding for schools to run
money management classes, and the One Scholarship for student
tuition. For more information visit the student blog on financial
literacy at oneforyourmoney.com.
About Higher One
Higher One Holdings, Inc. (NYSE: ONE) is a leading company
focused on helping college business offices manage operations and
providing enhanced service to students. Through a full array of
services from refunds, payments, electronic billing, payment plans
and more, Higher One works closely with colleges and universities
to ensure students receive Financial Aid refunds quickly, can pay
tuition and bills online, make on-campus and community purchases
and learn the basics of financial management.
Higher One provides its services to approximately 6.0 million
students at distinguished public and private higher education
institutions nationwide. More information about Higher One can be
found at HigherOne.com.
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