For Green Dot Corporation (GDOT), the past 12 months have seen a 194% gain. Despite the difficult times, the banking industry has generally faced, Green Dot is now continuing to grow through new services, despite the difficulty.
Providing prepaid debit cards, and e-banking portal, and a money transfer platform, Green Dot has expanded to other financial services companies. Besides providing banking services to clients, the company also provides consulting services needed to integrate basic banking into their day-to-day activities. GDOT has clients like Stash, Walmart MoneyCard, and Turbo Tax Intuit.
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Green Dot’s credit cards and debit cards are available in stores, for example. As part of its Green Dot program, Amazon has introduced a flexible debit card in the fourth quarter.
An exciting new development at Green Dot will be the launch of their GO2bank mobile banking app, which will provide Americans of all incomes and backgrounds with access to simple, low-cost banking services. Based on data from Green Dot, 54% of Americans (about 7 million people) lack access to banking services, which the company will target within the next few years.
In Green Dot’s second division, banks as a service (BaaS) is provided to prominent clients like Apple, Intuit, and Uber Technologies. Despite being large enough, these companies do not want to develop their banks and prefer to rely on Green Dot. The company makes payments for Uber drivers, for instance, one of the services it offers.
Revenue is overgrowing, with a 14 % growth rate in the fourth quarter and a 13 % rise for the whole year. Although some negative factors played a role in the growth last year, such as a decrease in the number of issued credit cards and signature loans and a reduction in banks’ interest rate, Green Dot also increased expenses by 11 %, which were an investment in development.
Approximately 3 % net income growth is expected at Green Dot in 2021. GO2bank and other new services, in particular, will increase the company’s revenue. They are also projected to expand their customer base for their BaaS programs.
Green Dot Corporation (NYSE: GDOT) fell by -2.05% during recent trading, translating to a loss of -$1.05 from Wednesday’s close price. The shares touched $49.67 as their lowest point during the trading session while reaching a high at $51.27. According to data provided by Barchart, GDOT closed the previous session at $51.10, with a trading volume of 0.39 million.