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Bank of America Corp (BAC), Green Dot Corporation (GDOT): A Bank Stock Bets It Can Perform Better Than Radiohead

Additionally, Green Dot Corporation (NYSE:GDOT)’s operating revenue comes mainly from its prepaid financial services sold through retail partners, with a whopping 62% from Wal-Mart Stores, Inc. (NYSE:WMT), and another 20% from the next three largest partners. Green Dot Corporation (NYSE:GDOT)’s GoBank is a new segment for the company, and one that it can experiment with while funding it from its positive free cash flow traditional prepaid business.

Worth a shot
Launching a new financial service means enticing customers to switch over, and using a pay-what-you-want model could be very enticing even if it seems like a gimmick. It seems this model is best paired with a charitable cause, and being online instead of face-to-face with social pressure may even further hurt GoBank’s monthly fee take, but for a new start-up, it’s probably worth the risk.

The article A Bank Stock Bets It Can Perform Better Than Radiohead originally appeared on Fool.com.

Fool contributor Dan Newman has no position in any stocks mentioned. The Motley Fool recommends Panera Bread and owns shares of Bank of America and Panera Bread.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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