- Truist Financial Corp (NYSE: TFC)’s stock price rose more than 2% in intraday trading today. That’s why it happened.
Truist Financial Corp (NYSE: TFC)’s stock price rose more than 2% in intraday trading today. Investors are reacting positively to Truist Financial’s announcement of the introduction of Truist One Banking, a first-of-its-kind approach to the checking account experience designed in response to direct feedback from their customers.
Starting this summer, the approach includes two new personal checking accounts with no overdraft fees and an innovative deposit-based line of credit, available to all eligible customers, that does not rely on traditional credit scores for qualification. . And Truist will remove returned items, negative account balances, and overdraft protection transfer fees in the coming months for all existing personal accounts.
The Truist One Current Account will include features such as:
— No overdraft fees
— A $100 negative balance stamp for eligible customers
— An easily accessible deposit line of credit, up to $750 (available to all eligible clients)
— Premium rewards that instantly recognize relationships and honor loyalty
Truist will also offer an alternative current account product for customers looking for simplicity and control with no overdraft fees. And this new product, also available this summer, will help customers avoid high check cashing and payday lender fees, bring many more households to traditional banking, and create a pathway to switch to Truist One.
Truist’s new deposit products address their customers’ biggest challenges, including purchases declined at the point of sale, lack of access to short-term credit to bridge unexpected revenue shortfalls, and the real-world impacts of unexpected charges . And for customers who frequently encounter overdraft issues, Truist will actively partner to offer assistance and share advisory advice regarding these new offerings.
These changes — along with the customer benefits of new accounts announced today — will result in an estimated $300 million in annual savings for customers by 2024. And existing customers will benefit from the elimination of most overdraft fees starting in the coming months, followed by additional customer savings over time as more customers choose Truist One after its summer rollout.
Plus Truist also partners with people and communities in new and innovative ways to build financial confidence and help more families access mainstream financial solutions. And with 58% of US households earning less than $60,000 a year and unable to cover a $400 emergency, Truist helps people overcome these challenges in several ways, including:
– Expand the largest banking partnership with Operation HOPE with a $20 million investment to expand no-cost financial coaching services to 600 Truist branches and help create 1 million black-owned businesses by 2030
– Partnered with Commonwealth through BlackRock’s Emergency Savings Initiative to launch a pilot program that combines repeated savings behavior with financial incentives to start building an emergency fund
— Partnered with the Bank Policy Institute to release the Child Tax Credit Toolkit, a resource to help banks close the CTC distribution gap for over four million eligible children
— Promote awareness of the expansion of the Child Tax Credit (CTC) with modules on all digital financial education platforms
“Truist wants to change the way people think about banking by creating an experience around what matters most to them. Guided by our purpose to inspire and build better lives and communities, we deliver banking solutions that enhance the financial well-being of our customers and create better pathways to financial inclusion for all.
— Bill Rogers, CEO of Truist
“Truist is a different type of financial services company, and we started this work several months ago by asking customers what they think. It is their input, combined with design thinking, market research and usage patterns, that is helping us redefine what a current account can be and create a better banking experience. The absence of overdraft fees is just one of the features. We are committed to providing customers with greater access to credit when they need it, offering rewards based on their relationship with the bank, and providing the opportunity to grow with us on their financial journey for years to come. to come.
— Brant Standridge, Director of Retail Community Banking at Truist
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.