By John Reynolds on Wednesday 22 July 2020
Kabbage Checking will have no monthly fee and a 1.10 per cent APY.
Kabbage, the SoftBank-backed fintech powered by AI, is launching business deposit accounts for small businesses, as it looks to enhance its offering.
The deposit accounts, called Kabbage Checking, will have no monthly fees and have a 1.10 per cent APY (Annual Percentage Yield).
The US-based fintech believes that small businesses are getting a less efficient banking service than bigger companies.
Kabbage president Kathryn Petralia said: “We believe in the businesses too often left out, overlooked and underestimated.”
“Kabbage Checking is a new banking service built to give those small businesses an upper hand to earn more, save more and grow their businesses faster without sacrificing anything they expect from a bank.”
Kabbage points to its record in helping small businesses during coronavirus by helping hundreds of thousands of small businesses in the US through the government’s Paycheck Protection Program.
It says small businesses can apply for the deposit accounts, which have no minimum or daily balance requirements, in minutes.
Later this year, Kabbage Checking customers will also be able to use wire transfers and mobile remote deposits.
This came just months after the American lender launched its own payments infrastructure to help customers accept online card payments.