Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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.

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!