A group of 128 community banks and credit unions have linked up with Kasasa, an online money management service, to lure new customers from big banks, reports CNN Money’s Blake Ellis. Customers banking with Kasasa receive free cash back rewards checking accounts and high-interest savings accounts in addition to regular banking services.
The program seems to be working. One Minnesota bank saw a 25 per cent uptick in checking and savings deposits in the first 15 months, a big jump from the 5 per cent it saw before the initiative.
Joining Kasasa gives smaller banks the opportunity to join large-scale sponsorships that can keep them in the public eye. Post-Kasasa, seven Ohio banks started sponsoring the Cleveland Cavaliers, Ellis reports.
Kasasa launched in 2009, but doubled its memberships in 2011. Nearly all its members joined in the latter half of last year when 5.6 million people decided to leave their big bank.