by Dana George | Updated July 17, 2021 - First published on May 14, 2021
Many or all of the products here are from our partners. We may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
Walgreens adds banking to their store services.
You'll notice a change in your local Walgreens store by the end of the year. The company announced last month that it will be offering bank accounts in all of its stores by the end of 2021.
Tips and tricks from the experts delivered straight to your inbox that could help you save thousands of dollars. Sign up now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.
As part of Walgreens' loyalty reward and discount program for shoppers, the company recently joined forces with Mastercard and Synchrony Financial to offer debit and prepaid credit cards to customers.
Now, Walgreens is looking to expand its financial reach by providing in-person and mobile banking at its nearly 9,000 stores nationwide. When you consider that 78% of Americans live within five miles of a Walgreens store (or a Duane Reade, owned by Walgreens), it makes sense. In rural areas, hard hit by bank closings, the ability to walk in, take care of banking business, and pick up a prescription is sure to provide convenience.
Given that Walgreens' new banking system will be available through a mobile platform and in person, it's primed for older customers. After all, older adults are the demographic most likely to need regular prescription refills. Once they're in the store, Walgreens has the opportunity to offer its banking services and help existing customers find value in "one-stop transactions."
Walgreens' mobile banking offering will enter a market that has historically appealed to younger customers. However, by launching both mobile and in-person banking services, the company casts the broadest possible net for new customers.
Walgreens has partnered with MetaBank to offer bank accounts -- and with InComm Payments, a payments technology company, to create the mobile application.
There's currently no word on the specific banking services that will be available to in-person customers vs. online. However, Walgreens has made it clear that customers will be able to open a bank account both in person and online.
Walgreens launched a new customer loyalty program in November 2020. Besides offering 1% in-store credit for every dollar spent, the program offers 5% in-store credit for every dollar spent on Walgreens-branded merchandise. According to the company, their rewards program will be linked to a Mastercard debit card that immediately debits a customer's bank account while keeping track of their loyalty points.
John Standley, president of Walgreens, spoke of the company's desire to "enrich the experiences and ways we meet customers' financial needs." For loyal customers and those living miles away from the nearest bank, it's likely to hit a sweet spot.
Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. The Ascent's picks of the best online savings accounts can earn you more than 8x the national average savings account rate.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.