CINCINNATI – (COMMERCIAL THREAD) – Fifth third swingMT recently took a big step forward: it has now helped clients pay off $ 5 million in student loan debt. The Fifth Third Momentum app, launched three years ago, allows customers to round up their debit card purchases to apply for a student loan.
“We are proud to play a role in helping families find solutions for student loans,” said Melissa Stevens, digital director of Fifth Third Bank. “Even in times of hardship due to the pandemic, we want to help our clients continue to work towards a goal that we know is causing a lot of stress, especially for our Millennial clients. ”
Fifth Third Momentum allows users to round debit card purchases to the next dollar or add $ 1 to each purchase. The additional amount is then applied to the balance of a designated student loan. Payments are made on a weekly basis once a minimum of $ 5 is rounded.
Fifth Third estimates that customers who round up $ 25 per month using the Fifth Third Momentum app could pay off a 20-year loan three years earlier and pay 8% less in total by avoiding the interest that would have accrued. *
“Our customers tell us they love the fun of using the app. They receive badges as an incentive when they reach certain milestones or payments while making additional payments for their loans, ”said Stevens. “We are very happy to have helped our clients already repay $ 5 million in student debt and look forward to many multiples of that number. ”
Since student loan debt affects more people than the borrower, Fifth Third Momentum also allows graduate family members to use the free app. They can sign up with their own Fifth Third debit cards and link purchases to help loved ones pay off student debt.
Fifth Third Momentum is available to any Fifth Third debit card user and can be used with over 30 major student loan services – public and private. Because the app is easy to set up and doesn’t require a lot of daily thinking, the bank hopes the automated micropayments platform will make debt reduction something as easy and inexpensive on a daily basis as it is. buy a cup of coffee.
To get started, customers download the app (Android or iOS) and enter the name of the institution that manages the student loan. The app gives tips to help you locate the loan number. Customers then decide on their preferences, including whether to round up purchases or contribute $ 1 for each debit card transaction. Once $ 5 in installments is accumulated, the money is automatically sent to the student loan account at the end of the week. To keep our customers motivated, they earn badges, called #Wins, to keep sticking to this new habit.
Helping people achieve their goals is a key tenet of Fifth Third’s digital strategy. In addition to Fifth Third Momentum, another free app created by the Bank, Dobot, helps its users achieve their short and long term savings goals. The app, which is available to customers and non-customers, automates savings and sends tips and encouragement along the way. It helps users focus on what they’re saving for and creates an easy path to get there.
For more information, visit 53.com/momentum or www.thedobotapp.com
* The example is based on a loan amount of approximately $ 37,000 – with a fixed interest rate of 6.80%.
About the fifth third
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of June 30, 2020, Fifth Third held $ 203 billion in assets and operated 1,122 full-service banking centers and 2,456 ATMs under the Fifth Third brand in Ohio, Kentucky, Indiana, Michigan, l ‘Illinois, Florida, Tennessee, West Virginia, Georgia and the North. Caroline. In total, Fifth Third provides its customers with access to approximately 53,000 free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management. Fifth Third is one of the largest fund managers in the Midwest and, as of June 30, 2020, had $ 405 billion in assets under watch, including $ 49 billion for individuals, corporations and nonprofits. through its Trust and Registered Investment Advisory Firms. Investor information and press releases can be found at www.53.com. Fifth Third common stock is listed on the Nasdaq® Global Select Market under the symbol “FITB”. The Fifth Third Bank was established in 1858. Deposit and credit products are offered by the Fifth Third Bank, National Association. FDIC member.