How Fintech Can Help the Working Class
Conventional financial services can be costly, a fact that’s especially true for more than 60 million hard working Americans who may pay a disproportionate amount to use systems which could exploit them. The combined cost of check cashing, payday advances, and unfavorable loan terms can add up quickly and impact their ability to improve their financial situation over time.
Growth expectations in credit card and electronic money transfer volume is at an all-time high, but for those in the cash economy, or otherwise underbanked, the cost of daily life can be high. If you consider the travel to secure or use financial products, paying bills via prepaid debit cards, money orders, and postage the cost can add up quickly.
Next-generation customers, however, have alternatives at their disposal. Fintech solutions bridge a gap between underserved and conventional customers through increased payment possibilities such as Cash App, Payactiv, and electronic transfers (ACH). Emerging payment plan options like Affirm allow customers to buy now and pay later which can save them money especially if they’re buying during a promotion or sale. At year-end, the emerging fintech customer is more adequately served.
While fintech can’t cure financial disparities between earning brackets, it is becoming a viable solution for underserved customers. Glenbrook is excited to see further innovations on the horizon and hopes that working-class customers and economic inclusion continue to be considered.
Read more about ‘The True Cost of Being Underbanked” from Glenbrook.