Your Money Adviser: Mobile Banks Gaining Popularity With Young Consumers

Then she heard about GoBank, one of a new breed of mobile banking services aiming at fee-averse customers, especially 20-somethings or “millennials,” accustomed to doing everything on their smartphones. She now uses it as her sole bank.

Ms. Goetze is a fan of a GoBank feature that lets her check her balance quickly on her phone, without having to log in to her account. “I love, love, love it!” she said. She doesn’t pay any monthly fee; GoBank lets users choose their fee (from zero to $9 a month), and right now she opts to pay nothing. But she said she may start paying $1 a month, now that she has been using GoBank for a while and likes it. She estimates she would have had to pay about $12 a month with a traditional account.

Old-fashioned banks, of course, also offer mobile banking apps, and branchless banks aren’t new either. But the upstarts, which include Simple and Moven, especially appeal to younger customers and others on a tight budget because they shun most fees, including dreaded overdraft fees, and have no minimum balance requirements. Each differs slightly in their offerings, but all aim to simplify payments and help users closely track their spending. They’re meant to be used when customers are on the fly, rather than sitting down at a computer.

The new alternatives work with traditional banks to hold deposits, so the money in your account is F.D.I.C.-insured. GoBank is the mobile banking arm of the Green Dot Corporation, which markets reloadable prepaid debit cards and owns Green Dot Bank, which holds the funds deposited via GoBank. Simple and Moven are in effect banking services, rather than banks, but they work with traditional banks to handle the actual banking functions behind their mobile apps. Simple’s deposits are held at Bancorp Bank, based in Delaware (a spokeswoman said Simple may also partner with other banks in the future as it grows), while Moven’s are held at CBW Bank, which is based in Kansas. But customers access the service through their mobile apps or websites.

The new mobile banks are gaining in popularity. Simple became available to the public in July 2012 and now has about 80,000 customers, said a spokeswoman, Krista Berlincourt. Simple currently requires users to email a request for an invitation to join, before allowing them to register. The approach acts as a fraud deterrent and also lets the company ramp up its systems to meet demand, she said.

Moven is still in its testing phase, and also asks customers to submit an invitation, said Alex Sion, Moven’s president; he says the service has “a couple of thousand” customers. One of its distinctions is that it offers users the option to make payments directly from their phone, by tapping the phone on a payment terminal, he said.

The new mobile models are evolving, but show promise by focusing on what the customer wants to do, rather than relying on banking terms that most millennials don’t care about, said Jennifer Tescher, chief executive of the Center for Financial Services Innovation. Simple’s users, for instance, can see their “safe to spend” balance, which takes into account pending bills. Young people like to have quick access to check their balances, she said, because they have been hard hit by the slow economy and are on tight budgets. “They care about having a terrific user experience that’s easy to use and understand, and works in real time,” she said.

Jim Bruene, founder of the Netbanker blog, said the new mobile banks had a “hip” aura that appeals to young people. GoBank, for instance, offers a budgeting tool called Fortune Teller. Users can ask whether a purchase for a certain amount is a good idea, and the system will respond based on your spending — usually with a mildly sarcastic remark (“Think. When did you last see your mind?”).

Email: yourmoneyadviser@nytimes.com

Corner Office: Paulett Eberhart: Paulett Eberhart of CDI, on Gaining the Boss’s Attention

Q. Were you in leadership roles early on?

A. After I graduated from college, I was hired as a billing office supervisor of about 30 people.

Q. That’s a big step for a first management role.

A. It’s one of those moments where you show up at the right time and they needed someone, and I think my college education was important to them. I had the good fortune of working for a woman who taught me a lot. Most of the people who worked there were older than me and they certainly had a lot more experience.

So how do you deal with that? You have to learn to become very humble, and you have to recognize that they know a lot more than you do. I spent a lot of time walking around getting to know them, spending time sitting with them, learning what they were doing, how they were doing it. I think they appreciated that.

Q. You said your boss at the time was a good mentor. How so?

A. She knew that I really wanted to learn, I was dedicated, and I was working really hard. I have found that if people think you’re working really hard and trying, then they’ll spend extra time with you. I learned very early that you’ve got to ask for help, you’ve got to go in and say: “Look, I’ve got this situation and I’m not sure what to do. I want to run it by you.” If people think you’re really trying, they’ll go the extra mile to help you.

Q. Tell me about some aspects of your leadership style today.

A. I tell my team that I expect them to be very honest, brutally honest with me, but in a respectful way. I like to have strong people around me, and they have to be very open and very honest and very candid. So you can’t just tell me once and assume that I grasp it.

If it’s critical and important, you’ve got to come back, you’ve got to tell me, you’ve got to come into my office and shut the door. I don’t care if you have to pound your fists on the table and say, “Paulett, I don’t think you’re comprehending it, I want your full attention, listen to me, this is what I am telling you.” We, at a minimum, need to discuss it or whatever the situation is.

And so I encourage them to be very aggressive with me because I work and I run at a fast pace, and sometimes you have to stop and take five minutes. You’ve got to invite them in and sit down and say: “O.K., what are the issues? You’ve got my full attention. Let’s talk about it.”

Q. You were brought into your current company to turn it around.

A. The board decided it needed someone from the outside who could bring more of a growth culture, which is a lot of what I like to do. I like transforming businesses and then figuring out how do we get a new strategy and start really growing. A lot of that goes back to my early days at E.D.S. because we grew so quickly there.

Q. What have you done to change the culture?

A. I was surprised to learn how many people in the company really didn’t know the company’s history. So I had some people re-create the history and we put together a video, because I think it’s good to know the past that leads you into the future.

I also saw a company that had really talented people, but they didn’t really talk to each other a lot. They were in different silos, and there were actually a lot of silos, given the size of the company. One of the things I heard from talking to our clients is that people from CDI don’t even know who each other are. That told me we weren’t maximizing our opportunities with the client.

So we tore down a lot of the barriers and really got people to think that if it’s good for the client, and good for CDI, then we’ve got to figure out a way to make it happen.

The other thing that I really focused on was accountability. You have to be accountable for your actions. And if you sign up to hit an objective, whatever that objective may be, then the rest of the organization and your client, or whoever else it may be, are counting on you to hit that goal. I felt we needed to push that more. Culture is a hard thing to change. It takes a long time, but you’ve just got to keep repeating things and practicing what you preach.

Q.  I’ve heard a lot of leaders talk about the importance of repetition.

A. People don’t spend enough time communicating. People love to know what’s going on, and you’ve got to keep communicating day in and day out. Sometimes I’ll think, I’ve said this so many times — surely people would get it. But then you’ll go into a meeting and you’ll think, wow, O.K., they don’t get it yet, so we’ve got to continue reinforcing it.

Q. How do you hire?

A. I try to get them to talk about what’s not on their résumé. Part of it is just getting a sense of the person. I’ll say that we’ve all had a lot of successes in our life, but we’ve had some things that we’ve learned from as well, so what are some of those?

And I’ll ask them, “If I were to talk to a group of people who’ve worked for you in different roles, what would they say that’s good about you, and then, what are the two things they would change about you?” And so it’s not so much about the answer — it’s just how thoughtful were they about it and were they really honest?

Q. What career advice do you give people?

A. I think accountability is important. People have to be able to count on you to deliver on what you committed to deliver, whatever that is.

I also talk to people about what I have learned in my career, and what I would do differently in some areas. One of the things I should have done earlier in my career is network more. I thought, just keep your head down and keep working and everything will work out. And I’ve done well, so I have no complaints.

But the advice I give people is to really keep those networks alive and truly stay in touch with people.

Gaining Experience and Helping Others at the Same Time

Most young attorneys understand and appreciate the value of doing pro bono legal work. For many, in a world where billable hours reign supreme, the issue is almost always one of diverting time away from fee-based matters and devoting the necessary amount of time to properly represent those in need.

However, when making this calculation, many young attorneys fail to recognize the positive effects doing pro bono work can have on their own careers. If there is any question in your mind as to whether you should commit to a pro bono representation, the immediate tangible benefits you will almost certainly see to your own career growth and development should tip the scales firmly in favor of doing so.

When I started practicing law as a litigation associate in one of Philadelphia's largest firms, I was eager to dive right in and get started. With scenes from My Cousin Vinny and other law-themed movies fresh in my mind, I could picture myself taking the Philadelphia courts by storm right out of the gate.

Of course, I know now, and deep down I probably knew then, that getting into court as a first-year associate is not always easy, especially in some of the larger firms. While firms are typically mindful of exposing young associates to actual courtroom experiences from an early stage in their careers, such experience usually comes in the form of observing a more senior attorney and/or mentor argue. The opportunities to actually stand before a judge or arbitrator and argue can be few and far between.

Luckily, I had an ace up my sleeve in the form of pro bono work. While at law school, I had been involved in a clinic that advised indigent clients on custody and support issues, and knew that I wanted to continue to help such clients as I built my practice. I quickly got in touch with Philadelphia VIP (with whom I highly recommend volunteering), found a case that looked interesting and off I went. Within a matter of weeks, I was arguing before a judge in family court.

Other pro bono opportunities came my way, and I always jumped at the opportunity to not just get involved, but to get valuable experience along the way. In addition to trying to always have at least one active pro bono child custody case, I have negotiated a settlement for an injured woman who entered into a structured settlement, represented a local neighborhood association in a dispute with various members of its community and represented prisoners in civil rights actions as part of the Prisoner Civil Rights Panel of the U.S. District Court for the Eastern District of Pennsylvania.

Each of these matters provided me with valuable, yet distinct, opportunities to refine my legal skills from an early point in my career. Whether it was getting into court from an early stage, taking and defending depositions or dealing directly with and advising clients, I feel fortunate to have had such great pro bono opportunities from the outset of my career. Young lawyers should make it a point to seek out similar pro bono opportunities early and often.

There is no mandatory pro bono requirement for attorneys imposed by the Pennsylvania Rules of Professional Conduct. However, Rule 6.1 is clear that a "lawyer should render public interest legal service." Although this appears to fall short of required pro bono service for Pennsylvania lawyers, the rule continues to discuss ways by which a "lawyer may discharge this responsibility." Thus, although the language of the rule is permissive, it is clear that pro bono service is not just something nice that lawyers can do, but indeed is a responsibility for all those who choose to practice law and be barred in Pennsylvania.

For young lawyers, the choice should be a no-brainer. Why not take advantage of your obligation to help not just those in need, but to help yourself by furthering your own career? It is truly a situation where everybody wins.

Of course, my purpose is not to suggest that attorneys should place their own career interests ahead of those of their pro bono clients or prospective clients. Indeed, the comments to Rule 6.1 state that "personal involvement in the problems of the disadvantaged can be one of the most rewarding experiences in the life of a lawyer." This is certainly the case. The overriding principle behind pro bono is the opportunity and, to be sure, the moral, ethical and professional obligation to provide legal assistance to those who truly need it but are unable to afford it.

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Gaining Experience and Helping Others at the Same Time

Most young attorneys understand and appreciate the value of doing pro bono legal work. For many, in a world where billable hours reign supreme, the issue is almost always one of diverting time away from fee-based matters and devoting the necessary amount of time to properly represent those in need.

However, when making this calculation, many young attorneys fail to recognize the positive effects doing pro bono work can have on their own careers. If there is any question in your mind as to whether you should commit to a pro bono representation, the immediate tangible benefits you will almost certainly see to your own career growth and development should tip the scales firmly in favor of doing so.

When I started practicing law as a litigation associate in one of Philadelphia's largest firms, I was eager to dive right in and get started. With scenes from My Cousin Vinny and other law-themed movies fresh in my mind, I could picture myself taking the Philadelphia courts by storm right out of the gate.

Of course, I know now, and deep down I probably knew then, that getting into court as a first-year associate is not always easy, especially in some of the larger firms. While firms are typically mindful of exposing young associates to actual courtroom experiences from an early stage in their careers, such experience usually comes in the form of observing a more senior attorney and/or mentor argue. The opportunities to actually stand before a judge or arbitrator and argue can be few and far between.

Luckily, I had an ace up my sleeve in the form of pro bono work. While at law school, I had been involved in a clinic that advised indigent clients on custody and support issues, and knew that I wanted to continue to help such clients as I built my practice. I quickly got in touch with Philadelphia VIP (with whom I highly recommend volunteering), found a case that looked interesting and off I went. Within a matter of weeks, I was arguing before a judge in family court.

Other pro bono opportunities came my way, and I always jumped at the opportunity to not just get involved, but to get valuable experience along the way. In addition to trying to always have at least one active pro bono child custody case, I have negotiated a settlement for an injured woman who entered into a structured settlement, represented a local neighborhood association in a dispute with various members of its community and represented prisoners in civil rights actions as part of the Prisoner Civil Rights Panel of the U.S. District Court for the Eastern District of Pennsylvania.

Each of these matters provided me with valuable, yet distinct, opportunities to refine my legal skills from an early point in my career. Whether it was getting into court from an early stage, taking and defending depositions or dealing directly with and advising clients, I feel fortunate to have had such great pro bono opportunities from the outset of my career. Young lawyers should make it a point to seek out similar pro bono opportunities early and often.

There is no mandatory pro bono requirement for attorneys imposed by the Pennsylvania Rules of Professional Conduct. However, Rule 6.1 is clear that a "lawyer should render public interest legal service." Although this appears to fall short of required pro bono service for Pennsylvania lawyers, the rule continues to discuss ways by which a "lawyer may discharge this responsibility." Thus, although the language of the rule is permissive, it is clear that pro bono service is not just something nice that lawyers can do, but indeed is a responsibility for all those who choose to practice law and be barred in Pennsylvania.

For young lawyers, the choice should be a no-brainer. Why not take advantage of your obligation to help not just those in need, but to help yourself by furthering your own career? It is truly a situation where everybody wins.

Of course, my purpose is not to suggest that attorneys should place their own career interests ahead of those of their pro bono clients or prospective clients. Indeed, the comments to Rule 6.1 state that "personal involvement in the problems of the disadvantaged can be one of the most rewarding experiences in the life of a lawyer." This is certainly the case. The overriding principle behind pro bono is the opportunity and, to be sure, the moral, ethical and professional obligation to provide legal assistance to those who truly need it but are unable to afford it.

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