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T-Mobile's bid to provide basic checking services to its mobile phone customers is the latest signal that banks are losing the low end of the consumer market.
January 23 -
T-Mobile has launched a checking service that aims to lure the underbanked away from high-fee check cashers and payday lenders.
January 22 -
A positive spin around branches will proliferate, as will talk about wearable tech. Oh, and expect tons of M&A -- between banks and nonbanks.
March 17
A few weeks ago, the New York Times published a story on T-Mobile that many bankers probably missed, but definitely should read.
The piece, authored by Farhad Manjoo and pointedly titled "
Careful readers will note that this strategy, which has been coupled with an aggressive (
Moreover, the associated customer attrition at competitors is forcing them to change their long-held pricing structures. Per Manjoo:
T-Mobile's plans were so blindingly sensible that its competitors have been forced to respond.In December, AT&T updated its plans to include a contract-free option. In February, Verizon offered a new set of plans that include similar options, though Verizon's plans are far more costly and less flexible. The larger carriers have also copied other T-Mobile ideas. After T-Mobile introduced its early upgrade program, Jump, which lets you pay an optional fee for the privilege of getting a new phone more frequently than every two years, AT&T, Verizon and Sprint followed suit.
All of this should be important to financial firms, since T-Mobile launched a
Jeanine Skowronski is the deputy editor of BankThink. You can contact her at