Liberty Bank for Savings in Chicago has launched an all-digital payments account for millennials, or consumers between the age of 18 and 34.

Customers who sign up for the bank's new Smart Debit Plus account will have access to a transfers, electronic statements and text message alerts to monitor payments and other transactions.

The new account includes no minimum balance or monthly fees. Additionally, the bank will not issue paper checks to its Smart Debit Plus customers.

"Since they want to do everything online, we created the account around a first-of-its kind debit card that accesses an array of largely free electronic services," says Kevin Tynan, a marketing executive at the bank, in a June 10 press release.

The $828 million-asset bank, which has five locations in the Chicago area, is offering a $50 bonus for customers who make an initial deposit of at least $25 or a recurring deposit of at least $100.

Millennials are a potentially lucrative market for payments and card products, though banks face challenges in reaching the segment due to the popularity of alternative payments products offered by companies such as PayPal, Google and Amazon.

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