launched similar offerings, though they one-upped Varo by introducing $100 overdraft cushions.
Where Wells Fargo's new accounts differ significantly from neobank competitors' is that there doesn't seem to be any minimum deposit or transaction thresholds, unlike with Chime and Varo, which could help the incumbent's offerings gain appeal among consumers who are wary of depending on a neobank as their primary bank. Still, Wells Fargo's advantage could be blunted by its monthly fees, something that Chime and Varo customers don't have to deal with.
Accounts with gentler stances on overdrafts could draw interest among US consumers, helping Wells Fargo steady the ship as it tries to leave its scandals behind. There appears to be a significant opportunity for banks to appeal to consumers by offering overdraft protections: Americans paid more than in fees on bounced checks and overdrafts last year, and 9% of all accounts are frequent "overdrafters" who overdraw their accounts more than 10 times annually.
Launching products that can help these consumers could drive interest in Wells Fargo from prospective customers, bolstering new business as the bank Want to read more stories like this one? Here's how to get access:, Business Insider Intelligence's expert product suite tailored for today's decision-makers in the financial services industry, delivered to your inbox 6x a week. >>