Axos Bank H&R Block Industry Impact Review

Axos Bank and H&R Block have joined forces to revolutionize the tax preparation industry. Their partnership is expected to save consumers time and money.

By leveraging Axos Bank's digital banking expertise and H&R Block's tax preparation experience, the duo aims to simplify the tax filing process. This collaboration will allow users to access their tax refunds directly into their Axos Bank accounts.

The integration will also enable users to pay taxes directly from their Axos Bank accounts, reducing the need for separate tax payment arrangements.

Axos Financial, a $12.2 billion-asset bank, is facing a significant threat to its partnership with H&R Block.

The partnership, formed in 2014, allowed Axos to provide H&R Block-branded financial products through the tax preparation firm's channels.

H&R Block is planning to terminate the six-year-old partnership, which could result in Axos losing $21 million in administrative fees in 2021.

Axos warned in March that the Emerald relationship was in jeopardy once it crossed $10 billion in assets, triggering a cap on interchange fees.

The company also faces the possibility of losing another $10 million in net operating income in 2021 if H&R Block chooses to partner with another bank for its Refund Advance product.

The partnership's termination would likely be effective on or around July 1, unless Axos and H&R Block can come to a new agreement.