James Gutierrez-Being Underbanked in America
James Gutierrez’s Solutions to Under-banking
Most people don’t know that some households in the United States do not have access to financial services. In fact, 25% of US households do not use bank accounts to attend to their financial needs. Unfortunately, most of the under-banked people are the ones facing economic inequality.
According to a recent study, 19% of families earning less than $30,000 annually remain unbanked, while only 2.4% of families earning more than $30,000 annually are unbanked. This study clearly shows that annual income can be used to estimate whether a household uses banking services or not. See This Article.
James Gutierrez notes that there are different reasons why some people are unbanked in the US. Some feel they don’t require a bank account because they don’t have a considerable cash flow, while others don’t have enough information about the options available.
Some people also are not allowed by circumstances to open a bank account. Immigrants, for example, cannot open a bank account even if they have a positive banking record. The reason is that they lack a social security number that is necessary to open a bank account.
Being unbanked puts people in a disadvantaged position. For instance, payday loans have high interest rates, while check-cashing services take a certain amount from the check. On the other hand, prepaid debit cards require a person to pay a certain fee to use their services.
To solve the problem of under-banking, James Gutierrez helped over 500,000 Hispanic individuals to access loans. Gutierrez, an entrepreneur and VC investor, has always focused on bringing equality.
Financial technology has helped multiple un-banked individuals to manage their finances, apply for loans, and access various other financial services.
James Gutierrez, the founder of several financial technology companies, is trying to provide a solution to the under-banked by introducing a platform that links the under-banked to banking solutions and insurance.