Minneapolis-based personal platform Branch has become a challenger bank.
The company has up until now made its name as one of the pay-access apps that have been rolled out across the US in recent years, but now it is expanding its services, according to Bank Innovation.
The CEO Atif Siddiqi told the publication that it made the move after spotting an opportunity in the market to cater to underbanked Branch users’ needs.
The company will now enable users to bank with the app without any fees. It will still offer customers early access to its app.
While proving popular, early pay-access apps are facing increased scrutiny across the US. Regulators are looking into whether or not the FinTech startups in the sector are too similar to payday lenders.
Copyright © 2019 FinTech Global
