July 17, 2008
“PNC Woos Generation Y with ‘Virtual Wallet’”
By Tim Grant
For a generation of young adults who have not been doing well at managing their money, PNC Bank has introduced a new tool that could help simplify their personal finances.
“Virtual Wallet” is an online banking program geared for the money mind-set and financial life of the group of individuals born between 1980 and 1994, often referred to as Generation Y.
“Technology is embedded into the lives of Gen Y. This is the first group to grow up with the Internet,” said Tom Kunz, senior vice president, e-Business division, PNC Financial Services Group. “Their needs and how they manage their money is different.”
An initial deposit of $25 is all it takes to open a Virtual Wallet account. There is no monthly service fee and no minimum balance requirement. A calendar allows users to see the money they need daily, weekly and monthly to meet their bills. The account tracks the flow of money in and out of the account and allows users to pay their bills online and allocate funds to short-term and long-term savings.
“Danger Day” is triggered on the calendar when the current available balance minus bills due before the next payday would bring the balance below zero. Danger Day warns the user that the “spend account” is at risk of being negative.
“I like how I can still save and not have a minimum balance because I just started working and have many expenses from just getting out of college,” said Michael Johnson, 22, who lives on the South Side. “I like being able to slide money between my regular checking, reserve savings and long-term savings.”
With Virtual Wallet, an animated feature called “Punch the Pig” allows bankers to shift funds depending on their goals, be it a big-screen television or their first condo. The user even can choose the pig's skin color and “oink” noise.
Mr. Kunz said the system was developed after 12 months of research on the real life challenges faced by today's twentysomethings, who are often recent college graduates with credit card debt, student loans and entry-level salaries. The average graduating student now carries a debt load of around $20,000
Virtual Wallet also serves the needs of a growing number of tech-savvy consumers who may not fall into the Gen Y demographic, but prefer to bank online.
According to CashEdge, a company that provides technology for online funds transfers for the banking industry, more than 36 million U.S. households are banking online − replacing visits to the ATM and the local branch with a few key strokes on their laptops and mobile phones.
“CashEdge has been quietly powering this online banking and money movement revolution for nearly a decade and today provides its services to hundreds of institutions across the country,” said Sanjeev Dheer, CEO of CashEdge based in New York.
PNC customers can go to any branch in Western Pennsylvania, Ohio or Kentucky to open a Virtual Wallet account. The account also can be opened online in any market.
“This is the iPod of banking,” Mr. Kunz said. “It's really an acknowledgement that this generation is different and we felt we could be the bank this generation will feel ‘gets it’ and hopefully they will stick with PNC.“
The Virtual Wallet Web site can be accessed at: www.pncvirtualwallet.com