Current, one of the leading digital banks in the US, reveals that it’s been a busy few weeks at the company as they began receiving tax refunds for thousands of clients five working days faster than regular banks.
Current claims that most of the money is being used for paying back friends and family members and for settling bills, which is “consistent with spending patterns” that the banking challenger saw from the second US government stimulus payments in December of last year.
Current’s management also mentioned that the tax refund season was delayed a bit this year because of stimulus payments. But even though the IRS was not accepting returns until February 12, 2021, Current says this did not impact its ability to receive and credit refunds for its members “five days faster than traditional banks.”
Current further revealed that the spending patterns they’ve seen are “similar to those of the second stimulus payments in December,” when they were the first Fintech challenger to credit payments, and this “reinforces just how many Americans are hurting for cash and still playing catch up nearly a year after the COVID-19 pandemic led to a shift in the workforce and uncertain economic times.”
In just a few weeks into the tax refunds, the majority of the money has reportedly been spent on paying back friends or family members and settling bills, and Current reveals that it has seen “shifting consumer spending patterns”:
- Spending on “paying back friends, family and paying bills have seen a total 15% increase vs. pre-refund spending for members’ who have received their tax refunds on Current”;
- In particular, “sending money with Current Pay has increased nearly 10%”;
- Average tax refund we have seen is “just over $2,000”;
Current’s management added:
“Much like we saw in December, Americans are still hurting for money and refunds and stimulus are stop gap measures helping people make ends meet. We’ll expect to see similar spending patterns with the next round of stimulus payments.”
As reported in January 2021, Current had noted that 2020 was “certainly not the year anyone was expecting,” however, for all the tribulations (not to mention “being in the epicenter of a pandemic” – above all), the company is quite proud that they were able to fulfill their promises or commitments to get their members “faster and better” access to their funds, especially at a time when they may have needed these services the most.
Current claims that it has helped members save over $100 million in overdraft fees in just the past 8 months (as reported in January 2021). The digital bank now claims more than 2 million members. It noted that “A LOT more people joined Current.”
Current members have also been able to earn points at more than 20,000 merchants. Additionally, there are over 30,000 locations where the bank’s members deposited cash.
There are now reportedly over 55,000 in-network free ATMs available to Current members.