Developed specifically to attract Generation Y customers (defined by PNC as ages 18 - 34), the program has signed up more than 20,000 Virtual Wallet customers since July 2008. 65% of these customers are new and 70% are in the Gen Y demographic.
The online program offers 3 account types - Spend, Reserve and Growth accounts. Customers use a financial calendar to track bill reminders, account balances, and hi-light "Danger Days" that alert the customer to overdraft risk. The Money Bar and Savings Engine allow customers to drag and drop money from one account to another, pay bills and set savings goals.
Profit comes in different ways. The bank charges a fee if more than 3 checks are written on the account monthly. The account pays 0.1% interest on checking accounts vs. the national average of 1.25%. They do pay 3% on the Savings Account, but limit deposits to less than $25,000.
With a cost of $15 million, PNC expects the project to break even in two years, compared to a three-year break even for their new branch locations.
Posts
Great idea, PNC! I like the name of the program and the logo. I also like the name of the account types they offer ... says it all!
ReplyDeleteThanks Cythia! The program combines traditional online banking functionality with "Quicken-like" financial management tools, in a user-friendly interface.
ReplyDeleteSounds like PNC has the whole package down pat. Thanks for reporting on this excellent financial product for the Gen Y market.
ReplyDelete