The stock market was having a strong day on Wednesday in reaction to the Georgia Senate runoff election results, and the financial sector was one of the biggest winners. But banking technology company Green Dot ( GDOT 3.18% ) was a big standout. As of 1:50 p.m. EST, Green Dot shares had gained 10% for the day.
On Wednesday, Green Dot revealed a new checking account product called GO2bank, the company's latest banking solution aimed at customers who don't have traditional bank accounts.
There are some key differentiators to the new account that could resonate with customers. For example, it has built-in overdraft protection of up to $200 and gives users early access to their paychecks, as well as access to a high-yield savings account and a secured credit card. While the GO2bank account isn't the first bank account Green Dot has introduced, it certainly appears to be the most innovative so far.
Another reason Green Dot is soaring is positive comments by CEO Dan Henry. In an interview, Henry said Green Dot's stock was undervalued, calling its current valuation as "the after-Christmas sale of a lifetime."
It's also worth mentioning that the overall financial sector is also rallying on Wednesday in response to the Georgia Senate run-off elections. Economic stimulus and higher interest rates could both be major catalysts for banks, and they are both more likely with a Democratic-controlled Senate.