Bluebird, the new prepaid card product being rolled out by Walmart and American Express, will provide banks and credit unions with more competition in transaction accounts and technology, but will not likely prove to be an existential threat to either, according to a noted credit union researcher.
Meanwhile, leaders at a credit union specializing in the unbanked and a national consumers organization both expressed concern about the new offering.
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Ben Rogers, research director at the Filene Research Institute in Madison, Wis., said the new card will play on some consumers' desire to "unbundle" their financial lives and relationships instead of having them all in one place.
He said it will also appeal to consumers who have either had difficulties opening checking accounts in the past, dislike checking account fees or like the additional technological tools Bluebird offers.
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