Towards a financially inclusive society, one community at a time

By Theodora Lau and Bradley Leimer of Unconventional Ventures

Nothing highlights the importance of access to financial services than a pandemic. From access to loans to the ability to cash out stimulus payments — all are especially crucial to the wellbeing of individuals as well as small businesses. 

Towards a financially inclusive society, one community at a time

And true financial inclusion is not just about whether or not someone has access to an account; it is also about whether they are able to leverage the banking services and become part of the economic fabric of the society. 

According to the FDIC, “more than half of unbanked individuals have access to a smartphone but do not have a checking or savings account.” Recognizing the opportunity to serve a larger community, more fintech startups are creating solutions that are targeted towards America’s unbanked and underbanked. 

As more of banking is opened up to new players and new partnership ecosystems, new fintech models around new, more inclusive communities, are being deployed. This is creating new forms of financial inclusion and associated financial wellness for the underserved and often forgotten members of our communities. 

Here are some examples. 

[1] Aspiration is a certified B-corp focused on connecting people’s financial wellness to that of our global climate. It assesses the carbon footprint of where their customers shop and provides them with alternatives to bank with merchants that are committed to improving the environment for our communities. As a mission-focused startup, Aspiration leverages behavioral science to nudge consumers to lead a more sustainable lifestyle, while benefiting the environment and society at large.  

[2] Cheese is the first banking solution designed for immigrants in the U.S. that does not require a social security number or credit history. It provides a debit card with credit card benefits, and a cash back feature that empowers consumers to support Asian owned businesses and restaurants. Similar to Chime, Cheese also offers early access to paychecks for customers who set up direct deposit. Another fintech targeting the immigration population is Fair, but with a membership model. 

[3] Daylight is the first LGBTQ+ digital banking platform in the U.S., focusing on building a more equitable financial life for LGBTQ people and their chosen families. Beyond checking account, Daylight also offers their allows trans and non-binary customers to order a card in their preferred name, book sessions with expert LGBTQ+ financial coaches, get peer-to-peer advice from their digital community and earn rewards that are meaningful to the LGBT+ community.

[4] First Boulevard is focused on serving Black Americans, and is similar to Greenwood, which also targets Black Americans and communities of color. Its “Cash Back for Buying Black” program uses merchant-funded offers to incentivize First Boulevard customers to frequent Black-owned businesses. Beyond early access to paychecks and an automated savings tool, First Boulevard also provides financial education and a cryptocurrency offering.

[5] Purple is a spending account that serves people with disabilities. It allows their customers to receive their disability benefits two days early and track spending. It also pledges to donate a portion of their revenue to the Special Olympics every time their customers spend money with their Purple Mastercard® Debit Card.

[6] Stilt offers a personal loan product for consumers who have a bank account but may not have a social security number or credit history. It uses data points such as employment, education, and financial behavior to determine the lowest interest rate, using machine learning and statistical models. 

[7] Stoovo, similar to Steady, is focused on creating income opportunities for gig workers. They provide insights to help gig workers find the best paying jobs, and help them simplify tax preparation, build and access credit, and set goals for earning and saving.

[8] Wahed is an online investment advisor that aims to provide an efficient and halal investment platform. It launched the first Sharia-compliant ETF in the US in 2019.  

The story on true financial inclusion has only just begun

While we are encouraged by the surge in specialty fintech startups targeting different underserved communities, the fight to economic equality is far from over. It is expensive to be poor; and consumers who are underbanked or unbanked bear outsized costs in their day-to-day financial lives, making it difficult to set aside money for emergencies or for the future. 

The FDIC reports that 85 million Americans are either unbanked or “underbanked” and are not able to access the traditional services of a financial institution. The road to true financial inclusion will require collaborative efforts between banks, fintechs, and the larger financial services community. Technology can play a crucial role in closing the gap toward a more equitable society for all. 

The desire to do good and to leave the world a better place for his daughter — is one of the things that drove Ken Lian to start Cheese. 

What about you? What’s your story? 

While banking should be a borderless experience, in reality, it is far from it. Immigrant communities for example, face a list of challenges from language barriers to lack of credit history and high wire fees. In 2018 alone, US immigrants spent over US$1 trillion, with international students contributing $42 billion to that sum. The market is ripe for change.

In this episode of One Vision (via Apple, Spotify, and other players), Theo and Bradley chat with Ken Lian, Co-founder & CEO of Cheese Financial, the first banking solution designed for immigrants in the U.S. that does not require a social security number or credit history. Cheese also features a social component, with cash back that empowers consumers to support Asian owned businesses and restaurants. 

In the age of deep social divide, we were inspired by Ken’s passion and drive to make a positive impact. And we hope you will too. 

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