Alternative Banking

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New technologies have created opportunities to bank in ways that did not exist in the past with the development of smart phones. With this new technology,  we also have the creation of “fintech” or financial technology companies disrupting the traditional banking system. Who are “fintechs,” and how are they changing the landscape and where do you fit in?

What’s New

Fintech companies–or another name by which they are referred to is “neobanks”–offer  innovative options that traditional banks and their models fail to capture. For example,  First Boulevard is a fintech company ( bank),  targeting black consumers offering them 15% cash back on purchases made from black-owned businesses that participative in the rewards program. Additionally, the bank also offers automated saving through a purchase round-up feature. It also promotes early payday access and no overdraft fees.

Fintech companies in general are attractive for several reasons. One is that they may require no minimum amount to open an account, or minimum bank balance. Also, some don’t charge monthly banking fees. They make it easier to open accounts, and pay a higher rate of interest than traditional banks. Also, many provide real time data on your spending. And most importantly, generally, the FDIC ( Federal Deposit Insurance Corporation) covers these deposits.  That means that the federal government insures your deposit for up to $250, 000.00 dollars, if the bank should fail.

Should I Change Banks?

Fintech companies are disrupting the traditional banking sector. They disrupt the banking sector with no overdraft fees and advance access to your paycheck. Financial institutions generally charge $33.00 dollars in overdraft fees per occurrence. If that does not alarm you,  then what about this: in 2020 banks earned an estimated $31.3 billion in overdraft fees! This is not interest or any other service, just overdraft fees! Meanwhile, you earn less that 1% on your deposit at the bank. When are you going to become a better steward of the resources entrusted to you?

Fintech companies, do not have great customer service. If you have a complaint or problem, or need service, you will have to communicate via email rather than speak to someone. You get what you pay for with all those “no overdraft fees and no minimum balance” promises. Take note, however, experts forecast that all the free perks fintechs offer now won’t last forever. At some point, the high interest rate that you earn on your deposit may be reduced. But for now, you can earn in some cases 4% on your deposit along with all the other perks for free. If you are looking for a greater return on your savings deposit take a look at internet banks.


Today’s what’s up is the expiration of the tax extension deadline.  October 15, this Friday is the deadline for those who did not file their personal federal income tax return on April 15, 2021, but instead filed an extension. Well, the extension expires on October 15, 2021. If you do not file by Friday and owe, you will face up to 25% in interest charges and another 25% in penalties. That means, almost 50% can be added to your tax liability in interest and penalties. I have seen countless instances where the interest and penalties are more than the actual tax amount owed! There is no reason to give Uncle Sam any additional money. And that’s what’s up!


Ruthven R. Phillip, Esq., is a tax attorney, Stewardship and Philanthropy Ministry Assistant, and CEO of Give2Getrich, LLC . Give2Get Rich, LLC 2021. All Rights Reserved. Any distribution or reproduction of part or all of the contents in any form is prohibited.


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