Galileo Processing Inc., through its Galileo Money division, has announced that its white label, FDIC-insured mobile banking program will be offered to individual investors through wealth management firms.
The Carson Group, a family of companies advising individual investors, will be the first company to offer the mobile banking service, which will deploy in the third quarter.
The mobile banking service will provide Carson Group clients with two accounts: the Galileo Money Plus Reserve Account pays 2.0% APY for wealth accumulation; the Galileo Money Plus Spending Account facilitates routine spending with bill payment, a Mastercard debit card, the ability to send money to family and friends, and access to 32,000 fee-free ATMs.
Galileo program partner Bancorp Bank will serve as custodian for the accounts, which will not charge service fees.
“In partnership with financial advisors which have a fiduciary responsibility to their clients, we’ve launched a scalable, sustainable banking solution that puts people before profit and offers market-based interest rates,” Galileo CEO Clay Wilkes said in a company release.
The average high net worth family keeps about $450,000 in checking, savings and CDs in traditional banks, he said.
Asked why Galileo had chosen Carson as their initial wealth management partner, a spokesman for Galileo said that Carson Group founder and CEO Ron Carson is “an influencer in the industry” who recognized the potential value of the mobile app.
“Since they’ve never had a viable solution for keeping these assets, they were basically sending revenue out the door to someone else,” the spokesman told Mobile Payments Today. “Now all advisers will have an extremely competitive opportunity to keep that cash with them.”