Green Dot is partnering with and spending $2.5 million in Gig Wage to provide solutions like debit cards and cash management to gig workers, several of whom are among the list of tens of millions of underbanked and unbanked americans.
Based on the Federal Reserve, 16% of grownups had been underbanked in 2018, meaning that they had a banking account but additionally utilized services that are alternative payday loan providers and check-cashing services вЂ” solutions that Gig Wage creator and Chief Entrepreneur Officer Craig J. Lewis called вЂњpredatory.вЂќ
The issue is especially urgent for Ebony individuals, whom made up the greatest proportion for the underbanked, at 35per cent weighed against 11per cent of whites. Ebony households additionally make within the greatest percentage associated with the 7.1 million households who possess no banking account at all, based on the Federal Deposit Insurance Corp.
вЂњBanks are organized in a fashion that causes it to be really cheap to gain access to cash for those who have cash, and extremely high priced to get into cash if youвЂ™re low on funds,вЂќ stated Aaron Klein, an other of financial studies in the Brookings organization. вЂњIt is quite high priced to be bad. Economic solutions really are a reason that is big.вЂќ
Green Dot and Gig Wage will offer the вЂњfirst comprehensive end-to-end solution for the gig economy,вЂќ where as much as 40% of employees in a few sectors are unbanked or underbanked, based on Lewis. The target is to provide a suite of services that address just how money moves through the whole ecosystem. […]