KeyBank’s Digital Offering Laurel Road Adds Checking Accounts

KeyBank, a large regional bank based in Cleveland, Ohio, has added checking to its digital banking venture Laurel Road.

Laurel Road was initially launched targeting healthcare providers – a top industry in the Cleveland market as it is home to the Cleveland Clinic and University Hospitals.  While the digital bank provided many banking services on its App, missing was a checking service.

Yesterday, Laurel announced new checking account features, including:

  • Cash bonus: A limited-time offer of a $500 cash bonus when making direct deposits totaling $2,500 or more within 60 days of opening the account
  • Student loan rate reduction: ​​Discounts of up to 0.55% on refinancing your student loan with Laurel Road when you open up a Laurel Road checking account and make recurring monthly direct deposits
  • Overdraft protection, no minimum opening deposit, and no account maintenance fee, along with World Debit Mastercard benefits, including chip capabilities and no monthly or annual fee
  • Access to 40,000+ ATMs nationwide + new mobile app includes an ATM finder, mobile check deposit, P2P/Zelle, and more

Laurel Road says that research indicates that 38% of young Americans would be encouraged to switch to a new bank because they’re looking for better savings options. It is well known that younger people want to avoid visiting a bank branch as much as possible by managing all of their finances on their smart phone.

KeyBank has offered a digital banking app for years with the service beginning as a pretty slim digital offering to a more robust platform today. Yet, KeyBank still suffers from far too many brick and mortar locations it must support – something that must be rectified in the not too distant future. By providing a purely digital, differentiated product, Key get’s to compete with itself and, hopefully, avoid the innovators dilemma.

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