Discover Financial (DFS) Unveils Checking Account With Benefits

Discover Financial Services DFS recently introduced a checking account bundled with benefits — Cashback Debit — to offer consumers a seamless money movement and an improved banking experience.

Shares of Discover Financial dropped 1.2% on Apr 7, replicating declines in broader markets.

The new checking account has been devised banking on Discover Financial’s Cashback Bonus rewards program, which has been a widespread success in delivering cashback to customers on their daily debit card spending since 2017.

To enhance the consumer checking landscape, Cashback Debit has been integrated with a suite of industry-leading features and benefits by Discover Financial. Some of the benefits are getting quicker access to paychecks, earning rewards in the form of cashback on debit card purchases of up to $3,000 every month and access to the mobile wallet utilizing Apple Pay.

Most importantly, the new checking account is devoid of any fees regarding monthly maintenance, insufficient funds or overdrafts. Apart from being able to avail security and fraud management offerings, the new checking account also offers the opportunity to access more than 60,000 no-fee ATMs throughout the United States. Discover Financial holds promising plans to upgrade the recently launched product by including features, such as additional eWallets, debit card enhancements, and tools necessary for customers to navigate their credit score.

Rolling out products similar to Cashback Debit is expected to hint at Discover Financial’s endeavor to offer accelerated and hassle-free checkout experiences to customers. Such initiatives will continue to strengthen DFS’ position as one of the leading digital banking and payment services companies in the United States, thereby bolstering its nationwide presence.

The new checking account, backed by some luring benefits, seems to have been rolled out at an opportune time. There seems to be a growing demand among consumers for not only the faster and seamless opening of bank and checking accounts but also the need for hassle-free digital management of these accounts. Therefore, when many consumers do not have access to a checking account devoid of any fee or containing cashback rewards, Discover Financial, with its Cashback Debit account integrated with all desired features as put forward by consumers in a DFS research, can capitalize on the prevailing scenario.

Apart from providing checking accounts, Discover Financial boasts a well-diversified product suite extending credit card loans, private student loans, personal loans and home loans, certificates of deposit, savings accounts and other types of deposit accounts. Discover Financial took a remarkable step in 2019 when it eliminated all deposit account fees, thereby resulting in substantial savings on the part of customers. To upgrade the product suite, DFS has enhanced technology solutions developed by either using in-house resources or by resorting to third-party vendors for technology services related to the cloud, telecommunications, hardware and operating systems.

Shares of Discover Financial have rallied 9% in a year against the industry’s decline of 3.8%. DFS currently carries a Zacks Rank #3 (Hold).

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the finance space are Enova International, Inc. ENVA, Axos Financial, Inc. AX and Primis Financial Corp. FRST, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The bottom line of Enova surpassed estimates in each of the trailing four quarters, the average being 48.58%. The Zacks Consensus Estimate for ENVA’s 2022 earnings has moved 1.9% north in the past 30 days. Enova has a Value Score of A.

The bottom line of Axos Financial outpaced estimates in each of the last four quarters, the average being 9.62%. The Zacks Consensus Estimate for AX’s 2022 earnings suggests an improvement of 8.7%, while the same for revenues suggests growth of 9.8% from the corresponding year-ago reported figures. Axos Financial has a Value Score of B.

Primis Financial delivered a trailing four-quarter earnings surprise of 27.81%, on average. The Zacks Consensus Estimate for FRST’s 2022 earnings has moved 1% north in the past 60 days. Primis Financial has a Value Score of B.

Enova’s stock has rallied 7.3% in a year. Meanwhile, shares of Axos Financial and Primis Financial have declined 14.4% and 12.3%, respectively, at the same time.

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