Discover financial services DFS recently introduced a current account with benefits – Cashback Debit – to provide consumers with seamless money movement and an enhanced banking experience.
Shares of Discover Financial fell 1.2% on April 7, mirroring declines in broader markets.
The new checking account was designed by leveraging Discover Financial’s Cashback Bonus rewards program, which has been widely successful in providing customers with cash back on their daily debit card spending since 2017.
To improve the consumer check landscape, Cashback Debit has been integrated with a suite of industry-leading features and benefits by Discover Financial. Some of the perks are faster access to paychecks, cash back rewards on debit card purchases up to $3,000 per month, and mobile wallet access using Apple Pay.
Most importantly, the new checking account is free of any monthly maintenance fees, insufficient funds or overdrafts. In addition to being able to take advantage of security and fraud management offers, the new checking account also offers the ability to access more than 60,000 fee-free ATMs across the United States. Discover Financial has promising plans to upgrade the recently launched product by including features such as additional e-wallets, debit card enhancements and tools needed by customers to navigate their credit score.
The rollout of products similar to Cashback Debit should hint at Discover Financial’s efforts to deliver expedited and hassle-free payment experiences to customers. Initiatives like these will continue to strengthen DFS’s position as one of the leading digital banking and payments companies in the United States, further strengthening its presence nationwide.
The new checking account, backed by attractive benefits, appears to have been rolled out at the right time. There seems to be a growing demand among consumers not only for faster and more seamless opening of bank and checking accounts, but also for the need for hassle-free digital management of these accounts. Therefore, where many consumers do not have access to a fee-free or cash back checking account, Discover Financial, with its Cashback Debit account integrated with all the desired features as offered by consumers in a DFS search , can capitalize on the current situation. scenario.
In addition to providing checking accounts, Discover Financial offers a well-diversified product line including credit card loans, private student loans, personal and home loans, certificates of deposit, savings accounts and other types of deposit accounts. Discover Financial achieved a remarkable milestone in 2019 by eliminating all deposit account fees, resulting in substantial savings for customers. To upgrade the product suite, DFS enhanced the technology solutions developed either by using in-house resources or by engaging third-party vendors for technology services related to cloud, telecommunications, hardware and operating systems.
Shares of Discover Financial are up 9% year-on-year against the industry’s 3.8% decline. DFS currently carries a Zacks Rank #3 (Hold).
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Some higher ranked stocks in the financial sector are Enova International, Inc. ENVA, Axos Financial, Inc. AXIS and Primis Financial Corp. FRST, each wearing a Zacks rank #2 (purchase). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Enova’s net income has exceeded estimates in each of the past four quarters, averaging 48.58%. The Zacks consensus estimate for ENVA’s 2022 revenue has moved north 1.9% in the past 30 days. Enova has a value score of A.
Axos Financial’s net income has exceeded estimates in each of the past four quarters, averaging 9.62%. Zacks’ consensus estimate for AX’s earnings in 2022 suggests an 8.7% improvement, while the same for revenue suggests 9.8% growth over the corresponding figures for the previous year. . Axos Financial has a Value Score of B.
Primis Financial posted a four-quarter earnings surprise of 27.81% on average. The Zacks consensus estimate for FRST revenue in 2022 has moved north 1% in the past 60 days. Primis Financial has a value score of B.
Enova’s stock jumped 7.3% in one year. Meanwhile, shares of Axos Financial and Primis Financial fell 14.4% and 12.3%, respectively, at the same time.
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