By Brandon Best A growing population of underbanked consumers is presenting major opportunities for Fintech and … [+] getty Underbanked consumers represent a massive and misunderstood segment of the US consumer market. These individuals tend to be disproportionately younger, poorer, and persons of color. They have distinct attitudes and motivations that have not been catered to by the traditional banking system. Decreased trust in financial institutions , tightening lending standards, and rising interest rates will push this segment further away from the traditional banking environment. Building trust and ultimately adoption of banking services within this population is a big opportunity for all stakeholders. These consumers are digitally savvy and increasingly comfortable banking beyond the confines of a physical network of ATM and retail locations. The emergence of De-Fi and Cryptocurrency underscores the increased digital savviness and lack of trust in financial institutions. These technologies however are too nascent and do not offer a large enough scope of coverage to meet the needs of this consumer. The advancement of big data, analytics, and neo-banks in addition to corporate and government focus on DEI will allow tech-enabled alternative data and finance startups to remove biased gatekeepers from the traditional financial system. […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
