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 alternate solutions like payday loan providers and check-cashing services вЂ” solutions that Gig Wage creator and Chief Entrepreneur Officer Craig J. Lewis called вЂњpredatory.вЂќ
The thing is especially urgent for Ebony individuals, whom made within the proportion that is highest for the underbanked, at 35per cent weighed against 11% of whites. Ebony households additionally make within the greatest percentage associated with 7.1 million households that have no bank account at all, based on the Federal Deposit Insurance Corp.
вЂњBanks are structured in a manner that helps it be really cheap to get into cash when you yourself have cash, and incredibly costly to gain access to cash if youвЂ™re low on funds,вЂќ stated Aaron Klein, a other of financial studies during the Brookings organization. вЂњIt is extremely high priced to be bad. Monetary solutions really are a reason that is big.вЂќ
Green Dot and Gig Wage will offer the вЂњfirst comprehensive end-to-end solution when it comes to gig economy,вЂќ where as much as 40% of employees in a few sectors are unbanked or underbanked, relating to Lewis. Read More