It may come as a surprise to many of us that consumers are generally satisfied with their banking relationships. However, this doesn’t mean that banks have nothing to worry about. Alternative providers and FinTech companies present a double-edged risk to traditional banks. First, there is the eminent danger of aRead More
Post Tagged with: "Underbanked"
We’ve all heard of the underbanked, though the term has somewhat fallen out of fashion since the underbanked usually have bank accounts and simply choose to use alternative services. Maybe they should be called the #otherbanked? But the overbanked — those with multiple accounts — are a different matter. TheyRead More
Consumer Banking is fundamentally about lending and non-bank lending (whether called AltFi, Marketplace Lending or P2P Lending) is already a mature market. Consumer Banking has taken 73% of Fintech investment to date (vs only 10% each for Asset Management) and Insurance) and has had the first IPOs and the firstRead More
Adult life in the US is highly dependent on your credit history. Your credit history, which is sourced from 3 credit bureaus and checked against the US overdrawn database; is your Digital Asset! Wake up to this reality! One of the largest underserved segments in the US, are individuals thatRead More
The humble ATM is holding up well. Folding notes are OK. According to research firm RBR, reported here, ATM cash withdrawals rose almost as quickly as cashless payments since 2010 (7.1% vs 7.6%). 4 Reasons Cash is So Resilient # 1: Merchants don’t like the fees on credit cards. # 2:CashRead More
The Underbanked is one of those inevitable but not imminent markets. It is inevitable that the next billion people entering the global middle class wired to the world through their mobile phone will be a massive market. However it is not imminent. You cannot realistically forecast when this will be big. You needRead More
Payments startup Movo wants to convert every mobile device into a card-issuing bank. Bank Innovation has learned that the Palo Alto, Calif.-based company raised a seed round of $700,000 on Jan. 31 and plans to launch next quarter. The Movo platform will use prepaid funds to issue payment tokens called Movo CashRead More
PayNearMe, which allows users to pay bills — even digital bills — with cash, serves the nation’s underbanked customers. Who are the underbanked? PayNearMe, based in Sunnyvale, Calif., lays it out in the infographic below, presented exclusively on Bank Innovation.
Fair Isaac Corporation, which invented the FICO score, was founded way back in 1956. The FICO score was one of the great Fintech innovations before the term Fintech was coined and the company is now publicly traded (symbol is FICO of course), with a market cap over $2.8 billion.Read More
Microfinance 1.0: The Gameen Foundation proves that default rates can be low when lending to the very poor. Microfinance is born. This was possibly the most important financial innovation in the last 50 years. Microfinance 2.0: Fast money rushes in and interest rates go to a level that is still better than loanRead More